Arab Today, arab today thai rice scheme causes price uncertainty
Last Updated : GMT 17:51:31
Arab Today, arab today
Arab Today, arab today

Thai rice scheme causes price uncertainty

Arab Today, arab today

Arab Today, arab today Thai rice scheme causes price uncertainty

Bangkok - AFP

A populist policy aimed at boosting the incomes of Thai farmers has raised fears of global rice price turbulence, and experts say the kingdom could just be hurting itself. Thailand, the world\'s biggest rice exporter, has vowed to boost the minimum price farmers receive by buying unmilled rice directly at 15,000 baht ($485) per tonne from October. The current price is about 10,000 baht. The move, part of an array of promises that helped propel former premier Thaksin Shinawatra\'s allies to victory in a July election, has fuelled speculation that world prices could be set to surge. While it is unclear what effect the policy might have on global consumers, prices have already risen and observers fear a spike could pile further pressure on poor importer nations. Rice is the staple food for more than three billion people, about half the world\'s population, and Thailand produces about one third of global exports, with China, Bangladesh, Philippines, South Africa and Nigeria among its major customers. Export prices for Thai rice on world markets have jumped from $500 per tonne in early July to around $600 as Thai farmers withheld stocks to take advantage of the rice deal, according to analysis from Capital Economics. The Thai Rice Exporters Association, concerned that the country could lose out to competitors, has warned that prices could hit $800 per tonne. Vichai Sriprasert, head of Riceland International, said last week the move could push Thai prices \"higher than anybody\". \"Any government in the world when they subsidise their commodities (it is) to be more competitive, but Thailand just did the opposite,\" he said. The United States Department of Agriculture predicts Thai exports, projected at 10 million tonnes this year, will slump by 20 percent in 2012, although global trade is predicted to drop just four percent from a 2011 record high. In a report earlier this month, it said Vietnamese exporters had already used their competitive advantage over Thailand to up sales, leading to a four percent rise in their price quotes since August as supply tightened. But government spokeswoman Anuttama Amornvivat said Thailand did not expect the move to affect the kingdom\'s dominant status in the market. \"We are confident we can export the same amount of rice but will earn more,\" she said, adding that Thailand expects 3.7 million farming households to benefit from the scheme. Export representatives from Thailand and Vietnam -- the world\'s second biggest supplier -- warned of the effect on consumer prices at a recent meeting in the northern Thai city of Chiang Mai. \"Vietnam is worried that the high price of Thai rice will cause their rice for domestic consumption to increase,\" said Chookiat Ophaswongse, of the Thai Rice Exporters Association, referring to Vietnam\'s double-digit inflation. A report from the USAID-affiliated Famine Early Warning Systems Network last month said Asian rice prices had risen \"significantly\" since July, driven mainly by the Thai government proposal. \"Unless trade in rice is disrupted by national policies, prices should remain relatively stable,\" it predicted, forecasting that world production would increase slightly ahead of consumption in 2011/12. \"If, however, rice prices were to increase, this development would have an adverse impact on food security in low-income, food-deficit countries, especially in the context of high oil prices and a global slowdown in economic activity.\" Capital Economics said prices were still unlikely to reach \"anywhere near\" their 2008 level, when they peaked at around $1,000 a tonne amid export curbs in India and rocketing oil prices. It said high forecasts were based on assumptions that Thailand would stockpile a large amount of rice, adding it could instead choose to sell at a discount. Economists said the bill for the scheme could be significant, which suggests \"the government will be keen to pass at least some of the cost to consumers. But it also suggests that the scheme may not be in place for very long.\" The rice project is similar to one set up under Thaksin -- who was ousted in a 2006 coup and lives abroad to avoid a jail term for corruption -- and is part of a raft of measures, including a rise in the minimum wage, aimed at his poor and rural support base. Thai economist Ammar Siamwalla, who said he \"had a hand in\" the last government\'s rival rice income guarantee subsidy that paid farmers when prices hit a base level, warned the scheme was open to corruption. He told the Foreign Correspondents Club of Thailand this week that research into a similar 2005 programme showed farmers received only 37 percent of the total project expenditure.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today thai rice scheme causes price uncertainty Arab Today, arab today thai rice scheme causes price uncertainty

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today thai rice scheme causes price uncertainty Arab Today, arab today thai rice scheme causes price uncertainty

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Lufthansa chief eyes up to 78

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Rouhani at UN defends Iran nuclear deal

GMT 09:41 2017 Thursday ,21 September

Rouhani at UN defends Iran nuclear deal
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Actress Ream Hhagag prepares for a new film

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday