US challenges Thai rice policy

Published: 10 Nov 2012 at 19.21
Online news: News

The United States will challenge Thailand over what it terms rice subsidies at the World Trade Organization next week, Reuters has reported.

Washington is worried that more rice now in government stockpiles could end up on the world market and depress prices, hurting US exporters.

Under its pledging programme, which pays farmers about 40% more than market prices, the government has effectively become the only rice buyer in the country.

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massein
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Discussion 23 : 11 Nov 2012 at 12.3923
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Most Americans families don't eat more the 5k of rice a year, and it comes in a box call Uncle Ben's
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massein
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Discussion 22 : 11 Nov 2012 at 12.3622
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In my neck of the woods the government pays farmers to "not" grow rice,
In fact some farmers have no intent to grow rice anyway. Last year
some carabian island folks were complaining that US rice was to cheap
sure are pulling me by the short hairs
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rfukata
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Discussion 21 : 11 Nov 2012 at 07.4121
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"he said, it would focus on looking for export markets that want the high-quality rice for which Thailand is famous"

there are many variation of rices with similar pricing structures which are even higher in quality than Thai rice in which the
importer would desire to buy over Thai rice, also nobody wants to buy old crop sitting in an unknown warehouse at a high
above the market value.
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nui
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Discussion 20 : 11 Nov 2012 at 02.3420
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Thailand must explain their government-to-government deals to WTO and show trade agreements including selling price. All buyers who are also members of the WTO must confirm the deals and prices. If Thailand comes up with memorandum of understandings only, the WTO must follow up the deals and get confirmation on real contracts. The shipments have to be checked, not only the shipping documents. Everything should be open and made available to the public and opposition, because rice subsidies involves tax payers money.
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brilliant
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Discussion 19 : 11 Nov 2012 at 00.1519
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ringmaster - did you read that in the Houston Post? US rice farmers don't dump rice on the world markets at cheap prices.
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facts_only
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Discussion 18 : 11 Nov 2012 at 00.0018
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"Why would we have to sell our rice cheaply at the expenses of the farmers?...in the beginning everyone wanted us to sell. We can’t do it because India dumped their [stock] out cheaply. At that time only 400 USD per ton. But now the rice price went up to 600 USD per ton–50 percent increase. So our stock has more value now. If you were to dump it, yes you can sell it faster but you’ll lose a lot of money. In Thailand, we help the farmers. It looks like you lost money in the left pocket but you are not losing money...So you lost in your left pocket 70 billion but you gained 81 billion in the right pocket." - Thaksin, Oct, 2012
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brilliant
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Discussion 17 : 10 Nov 2012 at 23.4217
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johnb - "The U.S. Department of Agriculture distributes between $10 billion and $30 billion in cash subsidies to farmers and owners of farmland each year."

Yes, so? The US doesn't then allow farmers to flood products onto the world markets at under valued prices which is what the concern is in the case. Please say something pertinent to the story which might mean something. The PTP government can't sell the rice so sooner or later they are going to dump it on the world markets at whatever price they can get for it destroying free market pricing.
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jacksprat
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Discussion 16 : 10 Nov 2012 at 23.1516
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"Can somebody tell me what business is it of the USA to poke it's nose into the affairs of Thailand ?" If Thailand wants to play games with the international rice price, the US government could easily buy up enough US grown rice and almost give it away on the market to complete wipe out Thailand's sales. I think the Thai government is going to listen.
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raywanpen
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Discussion 15 : 10 Nov 2012 at 23.1315
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well well, here we start right after the election, now will people open their eyes and see the true obama and how the next 4 years will be. now employers will have to make new expense cuts, me i have 1 employee working for me, i will have to furnish him insurance so i will either have to lower his pay or sell my truck and put him on the unemployment line. the fuel prices will either stay high or go even more higher from what i just heard on the news as i am typing this, my plans on going to thailand and retire soon looks very impossiable now. thailand shaked obama's hand then he turns around and kicked thailand in the rear
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joe_blow
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Discussion 14 : 10 Nov 2012 at 23.0214
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It's a global market, so Thailand selling below market price affects everyone, that's why the WTO (not the USA) is "poking it's nose" into the business situation. Thailand is a legitimate member of the WTO and has agreed to abide by the "rules of the game". Thailand can sell any quantity in line with reasonable supply and demand, at the current market value and accept a gain or a loss. What they should not do is inject (dump) a large volume on the market, more than enough to meet foreseeable demand, and thereby artifically affect the current market price, this is generally seen as an attempt to interfere with normal economic forces.
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US challenges Thai rice policy | Bangkok Post: business