The government will release stock for bidding in the low-price market and under the "no-bidding method" for the high-end market.
COMMODITIES: State seeks to improve stubbornly low rice prices by Phusadee Arunmas
The government plans to push the average price of exported rice to US$700 a tonne and reap revenue of 200 billion baht by focusing on quality over quantity, says newly appointed Commerce Minister Boonsong Teriyapirom.
Thailand shipped 10.6 million tonnes of rice last year, up by 18% from 2010, with a total value of 190 billion baht, up by 13%. The average export price was $595 a tonne, up by 0.7%. The top five importers were Nigeria, Indonesia, Bangladesh, Iraq and Ivory Coast.
Mr Boonsong yesterday convened a meeting with related government and private-sector groups to discuss rice policy.
Yanyong Phuangrach, the commerce permanent secretary, said the government will release stock for bidding in the low-price market and under the no-bidding method for the high-end market.
The ministry will open the bidding for 200,000 tonnes of broken rice with an aim to raise prices, not focusing on fair treatment.
It will also seek cabinet approval for continuous implementation of the paddy mortgage scheme at the same price.
It was noticeable that only some rice exporters - Chaiyaporn Rice and Food Products, CP Intertrade, Asia Golden Rice - were invited to the meeting, while key executives of the Rice Exporters Association, which opposed the mortgage scheme, were left out entirely.
Prasit Booncheuy, president of the Thai Farmers Association, said the government has failed to boost rice prices in the market with its mortgage scheme implemented last October, as white rice paddy remains about one-third below the guaranteed price of 15,000 baht a tonne.
He said the current price of paddy with 15% moisture content is 9,500 to 9,800 baht a tonne, but the price may be as low as 7,800 baht a tonne for paddy with higher moisture content.
The Internal Trade Department reported a white rice price Thursday of 9,600 to 10,200 baht a tonne in Nakhon Sawan province.
The project is not successful, as the market price is still low even though the government has announced to accept all grain to its mortgage scheme," said Mr Prasit.
The association also detects corruption in the implementation. Mr Prasit said the flood cut down the registered amount of paddy production by some farmers, creating a loophole as millers pledged their own paddy under farmers' names.
"Millers pay 1,000 baht a tonne to use the farmers' right to mortgage their paddy." he said.
The practice is supposedly widespread in Lop Buri.
Even so, the association wants the government to continue the paddy mortgage programme, as farmers who have begun cultivating rice will be able to harvest their paddy in May.
(Source: Bangkok Post, COMMODITIES, State seeks to improve stubbornly low rice prices, 28/01/2012, Phusadee Arunmas, link)
Rice Industry Vocabulary
commodities - products or a raw materials, such as grain, coffee, cotton or metals, that can be bought and sold in large quantities, especially between countries (every unit such as a kilogram or liter of the commodity is uniform and the same and therefore can be priced the same (See Wikipedia)
improve - to make better meliorate
stubborn - will not do something,k even when asked many times
stubbornly low rice prices - prices that will not increase (no matter what you do to try to make them increase)
COMMODITIES: State seeks to improve stubbornly low rice prices
reap - gain (example: the company reaped rewards from the new contract)
revenue - income from taxes or business activities revenue.
reap revenue - gain revenue
appointed - given a position in an organization
the government plans to push the average price of exported rice to US$700 a tonne and reap revenue of 200 billion baht by focusing on quality over quantity, says newly appointed Commerce Minister Boonsong Teriyapirom
convened - officially start a meeting; gather for a meeting who gathered at a rally.
meeting - when a group of people come together to discuss issues and make decisions meeting.
sector - a part of the economy the country's economy. (public sector = government, private sector = all businesses, household sector = families and consumers, banking sector,...) (See Wikipedia)
private sector - all the businesses in a country
policy - a set of plans or action agreed on by a government, political party, business, or other group policy a plan of action to guide decisions and achieve outcomes (See Wikipedia)
rice policy
Mr Boonsong yesterday convened a meeting with related government and private-sector groups to discuss rice policy.
commerce - the activity of buying and selling goods
permanent - happening or existing for a long time or for all time in the future permanent.
commerce permanent secretary
release - to allow to go free; to allow a substance to flow out from somewhere release.
stock - an amount of something that you keep so that you can use it when you need it kept in stock.
release stock - allow goods (rice) to go out of the warehouse where it is being stored
bidding - making an offer in an auction (here trying to offer to do project for lowest cost and thus win contract)
release stock for bidding - allow a certain amount of rice to be sold in an auction
under the no-bidding method - meaning: the government has selected certain buyers (and apparently it is not public information who was selected for what selling quantity and selling price)
Yanyong Phuangrach, the commerce permanent secretary, said the government will release stock for bidding in the low-price market and under the no-bidding method for the high-end market.
ministry - a government department dealing with an area of activity the Ministry.
aim - purpose; goal; the thing you hope to achieve by doing something intended target.
with an aim to raise prices, not focusing on fair treatment - prices would normally be maximized with open bidding (side payments in the form of inflated bids for high quality rice as a payoff for being allowed to participate in the bidding for lower quality rice might be one possible game theory explanation of what is happening, two things are for sure: 1. it is not clear what is going on (lack of transparency), 2. if "fair treatment" means "open bidding" then this would normally be the way to "raise prices", in other words the statement "with an aim to raise prices, not focusing on fair treatment" really makes no economic sense and may be another indication of "corruption in implementation")
the ministry will open the bidding for 200,000 tonnes of broken rice with an aim to raise prices, not focusing on fair treatment.
approval - official permission The junior Matsumoto.
implementation - making a plan into reality; actually do or carry out a plan; execution of a plan, making sure that something that is planned actually gets done (See glossary) The (plan) comes into force.
continuous implementation - doing the plan without stop, continueing the policy of plan without end
paddy - rice after it has been harvested from the field Paddy
mortgage - a legal agreement in which you borrow money from a bank in order to buy a house, build something, develop a piece of land, etc. Mortgage
scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people plans for the project.
paddy mortgage scheme - the government system of guaranteeing farmers a high price for their rice
it will also seek cabinet approval for continuous implementation of the paddy mortgage scheme at the same price.
key - important the major ones.
executives - a high level manager in a company (making plans and ensuring they executed successfully) the Executive.
It was noticeable that only some rice exporters - Chaiyaporn Rice and Food Products, CP Intertrade, Asia Golden Rice - were invited to the meeting, while key executives of the Rice Exporters Association, which opposed the mortgage scheme, were left out entirely.
boost - to increase; to strengthen increase; There are a lot more.
implemented - when a plan is put into action, actually doing the things in a plan
remains - the body of a person or animal that has died carcass.
guaranteed - promised that they will get something, for sure
the government has failed to boost rice prices in the market with its mortgage scheme implemented last October, as white rice paddy remains about one-third below the guaranteed price of 15,000 baht a tonne
current - of the present time present.
moisture content - the amount of moisture in the rice
he said the current price of paddy with 15% moisture content is 9,500 to 9,800 baht a tonne, but the price may be as low as 7,800 baht a tonne for paddy with higher moisture content
grain - the seed from cereal crops such as rice, wheat, or corn grain.
the project is not successful, as the market price is still low even though the government has announced to accept all grain to its mortgage scheme
corruption - (See Wikipedia on bribery, corporate corruption, and political corruption)
registered - officially recorded as a business with the government (and given permission to operate)
loophole - a small mistake in an agreement or law which gives someone the chance to avoid having to do something loopholes in the law, weaknesses, flaws.
pledged - seriously promised to do something Swear.
the association also detects corruption in the implementation. Mr Prasit said the flood cut down the registered amount of paddy production by some farmers, creating a loophole as millers pledged their own paddy under farmers' names
practice - a way of doing something; something that people do regularly practice
supposedly - believed to be; thought to be It is believed that
widespread - happening or existing in many places, or affecting many people more widely.
the practice is supposedly widespread in Lop Buri
harvest - gathering fully grown crops from the field; the activity of collecting a crop, in this case a rice crop the harvest.
even so, the association wants the government to continue the paddy mortgage programme, as farmers who have begun cultivating rice will be able to harvest their paddy in May
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