Boonsong: Rice sales 'secret'
Commerce Minister Boonsong Teriyapirom yesterday remained tight-lipped over the government-to-government (G-to-G) rice export controversy, saying details of rice sales are confidential and cannot be released to the public.
- Published: 12/10/2012 at 12:00 AM
- Writer: Post Reporters
Mr Boonsong has claimed the government has signed contracts to export 7.3 millions tonnes of rice under the controversial pledging scheme, though critics question whether the deals exist and have called for evidence.
Addressing a press conference yesterday, Mr Boonsong provided only slightly more information than he had previously. The minister was ordered by Prime Minister Yingluck Shinawatra to disclose "as much as possible" on the G-to-G deals so that the public might better understand the much-criticised pledging scheme.
Mr Boonsong reiterated his previous stance that details of the G-to-G rice deals could not be disclosed as it could affect foreign relations. He said the import of rice is a politically sensitive topic in many countries.
Mr Boonsong said 7.3 million tonnes of rice had been sold through the G-to-G deals to four countries _ Indonesia, China, Bangladesh and Ivory Coast.
Of the amount, 1.4 million tonnes had been delivered to the buyers, which accounts for 20% of the total contracted amount. Another 300,000 tonnes would be delivered between now and December, and the remaining 5.56 million tonnes would be gradually shipped out next year, he said.
Mr Boonsong insisted that the commerce ministry had paid 42 billion baht in proceeds from the sales of the pledged rice to the Bank for Agriculture and Agricultural Cooperatives (BACC). The BACC funds the rice pledging scheme through loans and direct funding.
The minister also rejected criticisms that the government had monopolised the rice market. Rice exporters, traders, millers and food processing manufacturers who use rice as a raw material could take part in the public auctions of the ministry, he said.
He also said that sales of the pledged rice were made through an ex-warehouse method, which forced the buyers to cover transport costs.
"The buyers thus have to hire private companies to check the quality of the rice and ship it out. That is why the export figure of 1.46 million tonnes showed up as being done by the private sector," Mr Boonsong said.
He said if the Commerce Ministry had not sold the rice, as alleged by the opposition party and some academics, the ministry would not have the money to return to the BACC.
Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said details of the G-to-G rice deals should be disclosed as they had no bearing on relations between countries.
"I believe the government gave false information when it said it released millions of tonnes of rice. It should have said that it had planned to release rice in G-to-G deals, but it still could not sell the rice and was seeking ways to sell it. The government is riding on a tiger and cannot dismount it," Mr Chookiat said.
He said that between Jan 1-Sept 30 this year, private companies exported 5.2 million tonnes of rice, or an average of 500,000 tonnes per month.
He expected that 6.5-6.7 million tonnes of rice will be exported by the end of this year, compared to the same period last year which saw 9.1 million tonnes of rice exports.
Mr Chookiat said the situation next year will worsen if the government continues to stockpile rice.
He said buyers will soon learn they can purchase rice of a similar quality from elsewhere at a lower cost, and will begin to shun Thai rice in favour of buying from rival countries.
Mr Chookiat also criticised the ex-warehouse sale method. He said it was wrong to trust private companies to take the rice first and pay later.
Mr Chookiat also took aim at the plan to store rice at a Don Mueang Airport cargo warehouse, saying the plan was clear proof of the government's mismanagement of the rice scheme.
The government needs more places to store rice because more grain has been admitted into the programme than should have been, without being released, he said.
He said the airport's cargo warehouse is unsuitable because it is normally used to store industrial products.
The grain could be damaged by moisture or insects due to lack of proper environment control, Mr Chookiat said.
He also said the airport's security consideration must also be taken into account. Allowing trucks carrying rice to move in and out of the airport could affect the airport's security, he said.
Share your thoughts
- Discussion 1 : 12/10/2012 at 09:08 PM
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D 28 As it is a G to G deal, it is partly the seller's problem. something called transparency. obviously a word not in your (or your friends) book. as always, in an attempt to try to change the subject, you duck the issue.
- Discussion 2 : 12/10/2012 at 06:33 PM
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Government to government state secret? “Who’s buying the rice”? Government: “If I told you, I’d have to kill you” (from the movies). This is the most moronic crock of bull I have ever heard. ASEAN and its economic opportunities that are supposed to benefit all members fairly and openly is approaching quickly. The cornerstone of its policy is supposed to be open and competitive markets, based on honesty and trust. Why doesn’t this government see how foolish they must be viewed? If Thailand won’t even be honest with its own people about how it is spending their tax money, what do you think is going through the minds of trade ministers from member nations?
- Discussion 3 : 12/10/2012 at 03:39 PM
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@bula, d28.
Why do you insist that Thai rice sales should be kept secret from the public? Is it because you want to keep the PTP in power, and worry that if this case is made public, they might lose this power? Is it because you prefer a lack of transparency and the corruption that inevitably follows? Is it because you honestly think that rice sales figures can will damage Thailands relations with the buying countries? Or is there an entirely different reason? I would really like to know your thoughts on this?
- Discussion 4 : 12/10/2012 at 03:15 PM
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Thailand has exported rice for years to other countries both through the private and the public sector. It was not a secret then, and none of the countries the rice was sold to ever complained that Thailand did not keep the deals secret.
I wonder why rice sales has all of a sudden become a top secret national security issue?
- Discussion 5 : 12/10/2012 at 03:08 PM
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If the sale is not transparent, how will the income recieved be transparent? This seems like the grandest theft this criminal cabal ruling the country have pulled off to date.
- Discussion 6 : 12/10/2012 at 02:57 PM
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Ministers as other Government officials are not employers (bosse) but employees working for the people and get paid by those people (the tax payer); therefore the people have the right to know what happens with their money saying otherwise is ridiculous!
- Discussion 7 : 12/10/2012 at 02:00 PM
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@Eric, d17.
"Thailand must maintain and respect international protocol."
Could you please let me know what international protocol is?
In the few EU member countries I am familiar with, the public can by law, through proper channels, request detailed information on any deal, contract, budget, spending etc. made by the government, unless it is classified, which is generally only the case if military related. Rice import/export is not considered military related.
This law of public insight is a great tool for the newspapers to expose corruption, which is part of the reason why most of especially the northern european countries have as little corruption as they do.
- Discussion 8 : 12/10/2012 at 01:20 PM
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Due to the great secrecy involved and in light of national security I would like to point out that at no time in the last 2 years have I bought any rice in this country.
- Discussion 9 : 12/10/2012 at 01:14 PM
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With the availability of reasonably priced rice from Vietnam, India, etc, there is no plausible reason why a government would pay more than market value for Thai rice.
Hence there are only two reasons why this is being kept secret: 1) the PTP had to sell it to the foreign governments at a lower price than they bought it for; 2) it is just another little white lie.
- Discussion 10 : 12/10/2012 at 01:13 PM
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Have to agree with Dao
if it was a resounding success I’m sure we would have all the politicians explaining how smart they were in supporting the rice scheme good it was and how they sold all the rice to all these countries
Echoes of the Thai Privilege scheme a brilliant tourist scheme which was the pet idea of !!!!
- Discussion 11 : 12/10/2012 at 01:00 PM
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This is just the tip of the iceberg... The warehouses are full. There is still a second crop to come in. The G2G sales are very unlikely to exist (if they did, PT would be shouting them from the rooftops).
When the next crop comes and there is nowhere to store it, will we hear rumours of secret dumping of rice into the sea? What to do with millions of tons of unsellable rice?
- Discussion 12 : 12/10/2012 at 12:38 PM
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sailor1 #21 - The commerce minister said you can ask the buyers for the details. If the buyers do not want to give, it is not the seller's problem.
- Discussion 13 : 12/10/2012 at 12:36 PM
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The rice hasn't been sold, or has it? The PM said that MOUs have been signed. But then Boonsong corrected her and said that contracts have been signed. Two of the buying countries know nothing about the sales. Either the PM doesn't know the difference between an MOU and a contract or maybe their stories haven't been rehearsed well enough yet. In the meantime we need more storage space for the rice which has been sold, or is this for the rice coming from Cambodia, which people see entering the country, but which the PM and Boonsong say they know nothing about. What a mess! Dubai, please help us!
- Discussion 14 : 12/10/2012 at 12:28 PM
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Khun Eric #17, who are you trying to fool? There is no such thing as secret international protocol on rice? I can think only of one secret protocol, C-C, which stands for "Crooks to Crooks."
- Discussion 15 : 12/10/2012 at 11:37 AM
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All government purchases and sales are suppose to be transparent. Unless it involves top secret weapons. But in this case it is just rice. I suspect they are moving the rice, but at a loss. Who in the world will purchase something that is over price, especially in such large quantities and when competition and supply is so high.
- Discussion 16 : 12/10/2012 at 11:36 AM
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It was previously 6 countries, now it's only 4. Why ?
It's still a bit more reassuring to see that they're still being pushed on this each day and it's not forgotten (yet) like so many other issues. Keep plugging BP.
- Discussion 17 : 12/10/2012 at 11:21 AM
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The buyers ?
Montenegro, Venezuela, Panama, Dubai, Iran, Syria, Taleban ????
- Discussion 18 : 12/10/2012 at 11:20 AM
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pjt #12 - Did you ask the countries yourself or you info are from some newspaper reporting?
- Discussion 19 : 12/10/2012 at 10:51 AM
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D8: as its seems that rice sales are a politically sensitive topic in many countries, do you really expect the customers to come forward with the information the thai authorities don't want to give?
- Discussion 20 : 12/10/2012 at 10:34 AM
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The level of arrogance by the PTP seems to be steadily increasing, there's absolutely nothing secret about rice sales. How long is this nonsense going to be allowed to continue?
- Discussion 21 : 12/10/2012 at 10:15 AM
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There is only reason you would have to keep this a secret .Its a miserable failure but the government wants to milk it for all its worth .
- Discussion 22 : 12/10/2012 at 10:05 AM
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Saying details of rice sales are confidential and cannot be released to the public.They are forgetting who they work for! The public have the right to know, and the government should have no secrets unless it is under the guise of National security, but selling state rice isn't! Time to go to court me thinks? (Move them sandbags out the way pls!)
- Discussion 23 : 12/10/2012 at 09:59 AM
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It is simple to understand that in dealing with another country especially so when food security issue are related that Thailand must maintain and respect international protocol. Is the Demo Party so ignorant of this fact or just to play to the population. Thailand just can't be frivolous in revealing G-G transaction details so the Commerce Minister is right. He has given a time line for sell and disposal and should be sufficient transparency. As when the targets are not achieved, then the public have the right to stage an uproar.
- Discussion 24 : 12/10/2012 at 09:47 AM
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We all remember that how severe the flood was last year, most farmers paddy was under water for months. Where the rice come from that needs Donmuang as storage? Is Mr. Boonsong pulls the rice out of thin air? What a joke! Very bad joke!
- Discussion 25 : 12/10/2012 at 09:43 AM
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"He said the import of rice is a politically sensitive topic in many countries."
Does he realize how politically extremely sensitive the topic of export of rice gets in his own country?
- Discussion 26 : 12/10/2012 at 09:40 AM
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Tell me what country is stupid enough to pay 33% more than market value? The reason there are secrets is because the whole story is fabricated. For Thailand to sell rice today at the current market price, they would have to accept huge financial losses. Another fabricated lie from the PT government.
- Discussion 27 : 12/10/2012 at 09:25 AM
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Iran? , Syria?
- Discussion 28 : 12/10/2012 at 09:08 AM
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D8@bula - ask the buyers? I recall that both Indonesia and Philippines - two of the supposed buyers - both said they were not interested to buy from Thailand and preferred to source from Vietnam
- Discussion 29 : 12/10/2012 at 09:06 AM
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OK the tonnes numbers at least make sense, but the 42 billions of proceeds makes no sense at all, especially as we are selling ex warehouse. If it relates to the 1.4 m tonnes already shipped then we got close to $1000/tonne for something that competitors sell for around $500/tonne - not credible. If it relates to 7.3m total tonnes the unit price is far too low. Minister is not being transparent as he should give the comparable net sale value for the 1.4 shipped or the total contracted. Perhaps the State Audit Commission has a role to produce some honest numbers.
- Discussion 30 : 12/10/2012 at 08:55 AM
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D1@spiceman
I agree with you 100%.
Government money does NOT belong to the government as they do nothing to earn it. It is given in trust to be used for the benefit of ALL the Thai people, not just the corrupt few and is should be transparently seen to be used properly.
Quote
Mr Boonsong reiterated his previous stance that details of the G-to-G rice deals could not be disclosed as it could affect foreign relations. He said the import of rice is a politically sensitive topic in many countries.
To hide behind that is an insult to everybody and raises the suspicions of most people too.
- Discussion 31 : 12/10/2012 at 08:51 AM
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Where do they find these completely incapable, muddle-minded, party appointed jokesters? Next we’ll see Swampabhume shopping mall with heaping mounds of rice as a cultural display in the sales area, if the AoT can get the approval of King Power.
- Discussion 32 : 12/10/2012 at 07:38 AM
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Commerce Minister said those who want to know the details can ask the buyers. He has already given the name of the countries. It is up to the journalists to investigate. Find out what the named countries are willing to disclose.
- Discussion 33 : 12/10/2012 at 07:17 AM
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Don Muang riceport.
We have sold it, but we need more storage room. I understand he tries to keep that logic secret, after all, who would undersand it?
- Discussion 34 : 12/10/2012 at 07:10 AM
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"He said the import of rice is a politically sensitive topic in many countries."
The guy starts to put his feet in his mouth (and I'm sure the mouth is big enough for both feets). The other day he said if somebody wanted to know more then "ask the buyers".
- Discussion 35 : 12/10/2012 at 06:53 AM
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" He said the import of rice is a politically sensitive topic in many countries"
Could somebody in this forum please explain that to me? How is the import of rice politically sensetive? Can rice cause unrest, crisis or civilwar? Has rice the same status like weapons, uranium or drugs?
- Discussion 36 : 12/10/2012 at 06:49 AM
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"The government needs more places to store rice because more grain has been admitted into the programme than should have been"
Yeah, that is most likely the rice that they brought in from Cambodia.
- Discussion 37 : 12/10/2012 at 06:43 AM
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Once Thai politicians have tax payers money in their hands they assume its their money as they invest so much of their own money to get their hands on what is handed to them by taxpayers.Being transparent would only expose their true ambitions.
- Discussion 38 : 12/10/2012 at 06:18 AM
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April Fools! Again! Nice way to get a good laugh.
"He said the airport's cargo warehouse is unsuitable because it is normally used to store industrial products."
Nice, perhaps only a few toxins will get into the rice. Can this get any more inept?
- Discussion 39 : 12/10/2012 at 03:15 AM
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The hallmark of Democracy is transparency and accountability, except matters concerning national security. So, since taxpayers' money, and lots of it, is being used to finance this scheme, it is all but appropriate that the taxpayers should be told of how their hard-earned tax money is being used. Democracy is majority rule but within the Rules of Law. Democracy without the Rules of Law is mob rule, OK?
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