Thailand back as the world's largest rice exporter
After two years, Thailand is likely to be back as the world's largest rice exporter at the end of the year, but there is not much reason to cheer, because every ton results in a loss. The rice comes from the stock that the previous government built up and bought from the farmers at prices that were 40 to 50 percent above the market price.
This stock is being phased out at an accelerated rate, bringing the export volume to 11 million tonnes, an absolute record since 2004 when 10,4 million tonnes were exported. It is a huge relief that the stock is now selling off, writes Bangkok Post in her editorial, whether through G2G deals (government to government) or by the private sector, because if the rice is kept much longer, it will just rot.
Thailand's regained leading position has no meaning whatsoever for rice farmers. Their income does not increase. It is also ironic, the newspaper notes, that the Thai rice farmers are the poorest farmers of the Asean countries that produce rice. Thai farmers earn 1.555 baht net per rai against farmers in Vietnam 3.180 baht and Myanmar 3.481 baht.
The situation is equally bad with productivity. This is 450 kilos per rai in Thailand, compared to 862 kilos in Vietnam, 779 kilos in Indonesia and 588 kilos in Laos.
If this trend continues, it has been calculated that rice export revenues will decline by 10 billion baht per year within 8 years unless productivity increases and production costs are significantly reduced.
The government is now thinking about reducing rice acreage and encouraging farmers to grow other crops, but more importantly, according to the newspaper, is research into varieties with higher yields and varieties that are resistant to pests.
And farmers should no longer be pampered, as previous governments have done, with populist measures such as the mortgage system (Government Yingluck) or price guarantees (Government Abhisit). With proper support, technical assistance and up-to-date information, they are very capable of standing on their own two feet, according to Bangkok Post.
(Source: Bangkok Post, October 2, 2014)
Had also read it on the running "Bloomberg economy news ticker", that the Thai government is no longer buying their rice, and wants to sell the stocks first.....so it doesn't look good for the rice farmers! selling at bottom price probably……
That is the sour apple that is on the table and sour apples must also be used up before you can have something sweet.
Let's be happy that Thailand is regaining its position in the world market; For years, Thailand was the largest rice exporter and Vietnam a close second, although the rice farmers are now paying the price after having paid a hefty price for a few years.
Farmers, they write. Not rice farmers.
The rice farmers have not seen a penny of the rice plan because they grow for their own use and barter in the family and surroundings. I see them in my area. Sometimes only rent a single rai and harvest what they need as just written. Nothing changes for them except the price increases and they will be skipped in the announced compensation.