Coming harvest will ensure kingdom's stockpile won't have to be tapped
Today Online 7 Apr 08;
BANGKOK — Thailand, the world's biggest rice exporter, has said that it will not cut back on exports of the grain. In fact, in a surprising show of confidence, Thai Commerce Minister Mingkwan Sangsuwan has said that there was no need to dip into the 2 million tonnes of rice the kingdom has stockpiled, even as global prices hit record levels.
This is because he expects about 6 million tonnes of milled rice to enter the market in the coming months from the nation's April-June harvest. Thailand's assurance on rice exports comes shortly after other major rice exporters such as India and Vietnam announced cuts to their own rice exports.
"The current shortage has been caused by some hoarding and panic buying on concern the price will rise further. There is enough rice supply for domestic consumption. There is no need to reduce exports, Mr Mingkwan told reporters late on Saturday in Nonthaburi province, near Bangkok, after meeting rice traders and government officials.
The ministry has also upped the number of officials who inspect rice millers, warehouses and retailers to prevent hoarding of the commodity, added Mr Mingkwan. This marks a significant turnaround, given that Mr Mingkwan had earlier proposed selling 200,000 tonnes of stockpiled rice to boost local supplies.
Offering an explanation, Mr Sumeth Laomoraphorn, president of CP Intertrade, Thailand's sixth-largest rice exporter, said yesterday: "With its decision to maintain the rice stockpile, the Thai government wants farmers to fully benefit from the high prices as a new harvest comes to the market."
There are, however, those who disagree with the government's decision, especially with the retail price of average-grade rice, the country's most consumed grain, rising to a record 26 baht ($1.10) a kilogram, an 11-per-cent increase from a week earlier, according to the Commerce Ministry's website.
Mr Pramote Vanichanont, Honorary President of the Thai Rice Mills Association, a trade group of rice millers, who was among those who met the minister on Saturday, said: "The release of state stockpiles should be made urgently to ease rice shortages in the domestic market. Most Thais, especially the poor, are suffering from the surge in prices of rice, which is their basic necessity."
Yesterday, however, Thai Prime Minister Samak Sundaravej urged the public not to hoard rice, promising for the second time in three days there would be enough for everyone in the kingdom. Mr Samak also reiterated that prices would stabilise once the current harvest reaches market and urged Thais not to overbuy. "The production of rice is on the normal schedule," he said on his weekly television show. "People are now buying more rice than they normally would." — Agencies
Thailand rules out selling rice from stockpile
Govt has no plans to cut rice exports as supplies suffice, says commerce minister
Business Times 7 Apr 08;
(BANGKOK) Thailand, the world's biggest rice exporter, ruled out selling some of the two million tonnes of the grain it has stockpiled as global prices rise to records.
Supplies will increase in the coming months as about six million tonnes of milled rice enters the market from the April-June harvest, said Commerce Minister Mingkwan Sangsuwan.
'There is enough rice supply for domestic consumption', Mr Mingkwan told reporters on Saturday in Nonthaburi province. 'The current shortage has been caused by some hoarding and panic buying on concern the price will rise further.'
The government has no plans to reduce rice exports because supplies are adequate to cover overseas orders, he said.
Rice prices have nearly doubled in the past year on increased imports by the Philippines, the biggest buyer and as China, India and Vietnam cut exports. Record food and fuel prices have stoked inflation, contributing to strikes in Argentina, riots in Ivory Coast and a crackdown on illicit exports in Pakistan.
'With its decision to maintain the rice stockpile, the Thai government wants farmers to fully benefit from the high prices as a new harvest comes to the market,' Sumeth Laomoraphorn, president of C P Intertrade, Thailand's sixth-largest rice exporter, said.
Mr Mingkwan, who yesterday met with traders and government officials, had earlier proposed selling 200,000 tonnes of stockpiled milled rice to increase local supplies.
The ministry has added to the number of officials who inspect rice millers, warehouses and retailers to prevent hoarding of the commodity, said Mr Mingkwan.
The retail price of average-grade rice, the country's most consumed grain, rose to a record 26 baht (S$1.14 cents) a kilogramme, an 11 per cent increase from a week earlier, according to the commerce ministry's website. That prompted some industry figures to disagree with the government's decision not to provide more of the grain.
'The release of state stockpiles should be made urgently to ease rice shortages in the domestic market,' Pramote Vanichanont, honorary president of the Thai Rice Mills Association, a trade group of rice millers, said after the meeting with Mr Mingkwan.
'Most Thais, especially the poor, are suffering from the surge in prices of rice, which is their basic necessity.' - Bloomberg
