US drought 'to lift rice prices'

Published: 17 Aug 2012 at 11.35
Online news:

Thailand, the world’s largest rice exporter, is content to sit on a record stockpile as the worst United States drought in half a century may boost prices, says Commerce Minister Boonsong Teriyapirom.

Reuters Photo

Thailand has room to store a further 20 million tonnes of unmilled rice; building on a stockpile of milled grain that the US Department of Agriculture expects will climb to 12.1 million tonnes in 2012 and 2013.

Thailand plans to spend a further 260 billion baht in extending a policy to buy rice from farmers at above-market rates to lift incomes.

"We don't have to hurry" to sell the stockpiles, Mr Boonsong said in an interview on Thursday. "We will wait for the right moment, the right price."

Thailand's rice haul is serving as a buffer against global grain reserves that the International Grain Council says are at the lowest in at least five years as droughts push corn and soybean prices to records. The policy, which is popular with farmers, may threaten the country's position as the top exporter this year as buyers choose supplies from India and Vietnam that are about 30% cheaper.

"People are already making forecasts that the price of rice will go up because of the situation in the US,"

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howell
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Discussion 17 : 17 Aug 2012 at 21.4417
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Mr Boonsong, 'We want our export price to be higher'. Duh ! Seems he has never heard of supply and demand.
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massein
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Discussion 16 : 17 Aug 2012 at 21.2316
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i really don't see the us increasing rice imports, it will remain about the same
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massein
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Discussion 15 : 17 Aug 2012 at 21.1715
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If Thailand really want to profit from America Drought they should increase the corn and soybean production, just laid off the rice for a season, American needs the corn and soybean for cattle feed
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Renaissance
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Discussion 14 : 17 Aug 2012 at 21.0814
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While I wish the Thai economy well, I think that the news is probably an attempt by the government to create a smoke screen around its failed populist scheme before the censure debate.

Whatever the truth is, it gives a picture of a disfunctional world in which because of a drought in the USA, the government of Thailand is hoping to squeeze financial benefit for itself, knowing that "playing the market" will cause hardship to poor people around the world who cannot afford to buy more expensive rice. Mankind can only continue to stumble from one crisis to another with such disunity and selfishness. Also, while being normal, international, government behaviour, it reflects poorly on the character of our Commerce Minister and his bosses.
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dao
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Discussion 13 : 17 Aug 2012 at 20.4413
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I dont think the minister is content to sit on the stockpile as much as he couldn't possibly unload it for the ridiculous price the government paid for it via the foolish rice scheme .It is good in a way because this will show even the rice farmers how useless PT are .
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ricardofel
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Discussion 12 : 17 Aug 2012 at 18.5812
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Robins, disc 1...you really think Thailand would give rice to needy countries where people are starving???? Please............they don't even have concerns for their own people.
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jacksprat
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Discussion 11 : 17 Aug 2012 at 18.4711
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"as the worst United States drought in half a century may boost prices." Then again maybe it won't.
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englishjon
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Discussion 10 : 17 Aug 2012 at 18.0810
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Normally I would be encouraged by such news - but I have noticed a trait for PT where they simply present their 'wonderland wishes' as if they are hard fact. In time we discover they were daydreams of people who didn't really know what they were doing.

I wonder what the real figures are. How much would the price need to rise and how much rice would need to be sold before the policy could judged anything other than a disaster ?.
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dickemery
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Discussion 9 : 17 Aug 2012 at 18.059
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so whats happend to the missing 4 million tonne unaccountted for, that work out to 500 dollas a tomme equals 2 billion dollars alot of profit thats not going to the farmers, where does it go ?
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upena
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Discussion 8 : 17 Aug 2012 at 18.028
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"Thailand, the world’s largest rice exporter" - WRONG. Thailand lost that title last February to India.
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