Thai farmers welcome rice pricing reforms

Farmers have welcomed benchmark prices for paddy set under a new subsidy scheme for the main 2009-10 crop, but asked the government to raise the amount of paddy that the scheme would cover.

Prasit Bunchoei, chairman of the Thai Rice Farmers Association, favours a limit of 20 tonnes per farmer from 16 tonnes now planned.

Officials on Monday set a benchmark price of 10,000 baht per tonne for 15%-moisture white rice paddy under the new subsidy scheme.

The benchmark price for Thai Hom Mali paddy was set at 15,300 baht per tonne, with general fragrant paddy at 14,800 baht and Pathum Thani at 10,000 baht.

The prices would be submitted for cabinet approval next week if the National Rice Policy Committee approves them today.

The new programme could start in November, when harvesting of the main crop begins. The government will guarantee farmers the prices quoted. If they sell rice to millers or exporters at lower than the official price, the government will pay them the difference.

Philippines buys 75,000 T rice from Thailand, Pakistan

Asia Golden Rice secured the deal to supply Manila with 47,000 tons of Thai rice at $487 per ton, including cost and freight.

Thai Hua Ltd. was awarded the supply of 18,000 tons Thai rice at $486.28 a ton, C&F, and global trading firm Toepfer International the remaining 10,000 tons of rice, to be sourced from Pakistan, at $472.72 a ton, C&F, he said.

The 3 firms submitted the 3 lowest bids at last week's tender.

Monsoon activity report

Recent monsoon activity remained mainly confined to peninsular and central India, with most northern and northeastern states receiving significantly below-normal rainfall. Official data show that progressive planting of most kharif (fall and early winter-harvested) crops, particularly rice, up to July 17 this year was still lagging behind last year's level.

Thai export prices increase

Export prices continued to increase due to tighter exportable supplies. However, the current price increase will be temporary as the Government is expected to release intervention stocks early next month. The new intervention program for MY2009/10 main crop to begin in November 2009 will include both the regular mortgage scheme and new scheme based on Price Insurance.

New Thai Rice Buying Price Seen at 10,000 Baht/Tonne

Bangkok, July 28 - Thailand, the world's biggest rice exporter, could set a benchmark price of 10,000 baht ($294) per tonne for white rice paddy under a new subsidy scheme it will introduce for the main 2009/10 crop, a senior official said on Tuesday.

 

That price would be equivalent to an export price for milled rice of around $550 per tonne, below the current level for benchmark 100 percent B grade white rice, which was quoted at $590 per tonne on Tuesday, exporters said.

 

"This buying price covers all costs of production and allows farmers to have around 30 percent profit," said Apichart Jongsakul, secretary general of the Office of Agricultural Economy, part of the Agriculture Ministry.

 

He said the price would be submitted for cabinet approval next week and the new programme could start in November, when harvesting of the main crop begins.

 

The proposed new guaranteed price is 15 percent lower than the intervention price that the government is paying farmers of 11,800 baht for paddy. That scheme is due to expire on July 31.

 

The government is estimated to hold the equivalent of 6 million tonnes of milled rice, a record high. That is hanging over the market and adding to the downward pressure on prices, one of the reasons why the government is bringing in a new plan.

Thai Commerce Minister Wants Rice Bidding Condition Revised

The bidding for 500,000 tons of rice in the government's stockpile continues to create a headache for the current adminsitration.
The Commerce Minister will ask the Prime Minister to allow rice traders to purchase the rice stockpile in smaller consignments.

Commerce Minister Porntiva Nakasai stated the ministry has decided to postpone the date to release the details of the bidding for the new lot of 500,000 tons of rice from the government's stock to July 27.

Porntiva explained that buyers are only interested in buying specific types of rice and in smaller consignments. However, it is not possible to do so as the Cabinet requires the bid winner to purchase all the 500,000 tons of rice from the stockpile resulting from the rice-pledging scheme.

The government stock contains a variety of different types of rice, including jasmine, white and Pathum Thani fragrant rice.

Porntiva said the requirement could discourage rice traders from buying the rice. Traders have said they are unwilling to buy the rice in such a large quantity.

The minister plans to consult with Prime Minister Abhisit Vejjajiva, in his capacity as the chairman of the National Rice Policy Committee, to allow some traders to purchase only certain types of rice.

Bangladesh may lift ban on rice exports

Bangladesh is likely to allow private traders to export fine rice after a bumper harvest and a surge in domestic stocks, a commerce ministry official said.

The country, a major importer that also usually exports a small quantity of rice, banned overseas shipments of common varieties in May 2008 following a drop in domestic stocks, and six months later banned the export of all varieties.

"In the first phase, we are going to allow export of 10,000 tonnes of aromatic rice," the commerce ministry official said.

"After that we will consider the next step to allow further rice exports. But only fine variety and a certain amount of rice will be allowed for export for a limited period," he added.

India to ban all wheat, non-Basmati rice exports

As contingent measures to deal with the deficient rainfall, the Centre on Friday said it will stop all exports of non-Basmati rice and wheat, and bear half of the subsidy on diesel offered to farmers by the States.

Mexico to lift ban on Irri rice import

Mexico has agreed to lift ban on import of Irri rice from Pakistan, quarantine officials said on Thursday; the Mexican market could absorb 10,000 to 15,000 tons of Pakistani rice which would earn a sizeable foreign exchange. Russia has also lifted ban on import of Pakistan rice.

India's Rain Deficit Narrows as Monsoon Strengthens

India's rain deficit narrowed to 19 percent as the monsoon, the main source of irrigation for the nation's 235 million farmers, gathered momentum, aiding sowing prospects, the weather office said.