No truth in US Rice Fed fears, says Boonsong

Commerce Minister Boonsong Teriyapirom yesterday dismissed US farmers' concerns that the rice pledging scheme would drive up rice production and lead to dumping of the crop when the stock is released on the market.

Published: 20/10/2012 at 12:00 AM

Mr Boonsong said the US Rice Federation's fears were unfounded.

With limited farmland and irrigation capacity, an increase in Thai rice production would not have a huge impact on the world market, he said.

He was responding to a news report that US farmers had submitted a letter to the US Trade Representative raising concerns about the Thai government's rice pledging programme.

The commerce minister said rice would not be dumped because the government sold its stocks to local traders at high prices, the equivalent of US$540-560 (16,600-17,200 baht) per tonne, which was $100 (3,100 baht) higher than prices Vietnam and India sold their stocks at.

Thai rice was priced at around $679 (21,000 baht) per tonne on average, an increase of 17.27% compared with last year's price of $579 (17,800 baht).

He said an increase in Thai rice prices should boost rather than lower US competitiveness. In the past, Thai rice prices were much lower than those in the US.

"The scheme doesn't affect rice exports in other countries. On the contrary, they benefit from pledging programmes," he said.

Mr Boonsong said the pledging programme would also ensure global food security in the long run, given the growing consumption of rice.

He insisted the programme was not in breach of World Trade Organisation regulations on crop subsidies, saying the US farm programmes were more likely to affect Thai exporters.

Meanwhile, a 100-strong police squad yesterday inspected 10 government warehouses where 600,000 tonnes of pledged rice were being stored.

The officers were looking for any irregularities.

Led by Buri Ram police chief Pol Maj Gen Rattapong Yimyai, the unit examined stockpiles of the pledged rice from the 2011/12 harvest year in Muang and Prakhon Chai districts. The police team was accompanied by representatives from the Department of Internal Trade and Public Warehouse Organisation.

Pol Maj Gen Rattapong said the inspection found no sign of irregularities.

About 14,000 tonnes had been sent to the Department of Internal Trade for release. It was expected the remaining rice would be sent to rice millers taking part in the rice scheme by the end of this year.

The government needs to clear the warehouses for the 2012/13 crop year.

Pol Maj Gen Rattapong said about 300 farmers has been questioned so far in connection with alleged irregularities in the rice scheme in Nong Ki district. A total of 459 rice farmers were suspected of corruption in the pledging scheme.

He said warrants for the arrest of those accused of cheating in the rice scheme were likely to be issued within two weeks.

Share your thoughts

Discussion 1 : 20/10/2012 at 08:48 PM: 'The commerce minister said rice would not be dumped because the government sold its stocks to local traders at high prices....'. Oh yeah ? Like the G to G deals ? This scheme is unbelievably stupid. 'World rice supply soars, prices to fall? BKK Post 17/01/2012. 'Increased rice production by India & rice importing countries pose danger for Thai world rice market leadership'. Megalomaniac Thaksin thought he could manipulate supply like manipulating people. Someone should have told him he could not, economics 101. IF a cartel was in place the scheme might have worked but no cartel in sight.
Discussion 2 : 20/10/2012 at 05:12 PM: White lies by the Puea Thaksin regime may work here in Thailand but the US will not buy them.
Discussion 3 : 20/10/2012 at 01:19 PM: "no sign of irregularities" despite 11 tons "missing" Given the above statements and facts, may I propose an equally as astounding explanation for 11 tons missing albeit without irregularities. Captain Kirk and Officer Scottie aboard The USS Enterprise (Star Trek Spaceship) accidentally beamed up the rice. Amazing, astonishing, astounding, miracle Thailand.
Discussion 4 : 20/10/2012 at 12:40 PM: As usual, the 459 people who are being charged for cheating or corruption are the small fry - no doubt small farmers with no connections. It's like in the case of the people caught selling drugs. No influential person or politician ever seems to be arrested. I wonder if the Thais realize this.
Discussion 5 : 20/10/2012 at 12:11 PM: Well US is busy subsidizing it's own farmers and it's rice has been excluded from EU because it contains evidence of gene manipulation. Thailand should just ignore these grumpy remarks and concentrate on forming a rice cartel with Vietnam and India so that this part of the world can get a fair, and much higher price for it's commodities, in this case rice...the prices now are far too low compared to other basic foods, make a cartel, crank up the prices, way to go...exactly like OPEC did in the 70's .
Discussion 6 : 20/10/2012 at 11:49 AM: I agree with bikeme to be a good liar you need a good memory.The whole story contradicts earlier statements.
Discussion 7 : 20/10/2012 at 11:39 AM: Don't worry , some guy just showed up pledging 11,000 tonnes of rice.
Discussion 8 : 20/10/2012 at 11:19 AM: Maybe the US should stop subsidizing it's own agriculture and it's own industries first. Besides Thai rice do not bit US rice. US rice is Frankenstein rice from GMO's.
Discussion 9 : 20/10/2012 at 11:09 AM: No truth in US Rice Fed fears, says Boonsong. OK, Khun Boonsong Krabphom, lets make a simple wager (betting is not allowed) not for money but for honour (look it up in the dictionary). White Lies excuses are no more allowed you will understand I trust. I wager the US Farmer Federation is right, and you say they are not. Time will tell. Lets keep track.
Discussion 10 : 20/10/2012 at 10:36 AM: Thailand should not only be worrying about the high price of rice, which prevents or reduces exports. GMO rice seeds are spreading around Thailand and being distributed for free to farmers. At some stage the world community will reject Thai rice because there is too much GMO rice in what is sold. GMO seeds are used in Thai soya beans, maize, papaya, and pumpkin, and at least two western countries have found and rejected Thai exports of papaya. Perhaps the day will come when western markets reject Thai rice not just because it is so expensive, but also because it is GMO rice. I wonder what encouraged Thai politicians to introduce GMO seeds.
Discussion 11 : 20/10/2012 at 10:27 AM: I heard a buyer from Dubai just ordered 11,000 ton of rice, they might want to look into this guy !
Discussion 12 : 20/10/2012 at 10:15 AM: How much tax payer money will be wasted on this nonsense scheme before people say enough is enough.Unfortunately the people who pay for this scheme dont have the luxury of being bussed in to protest because they have jobs ,bills and mortgages to pay .
Discussion 13 : 20/10/2012 at 09:42 AM: Of course there's truth in "U.S. rice fed fears." Asian economies have always enjoyed a trade-surplus with the United States, and have shown no "Thank you," for U.S. favors. Time to crack-down on dumping.
Discussion 14 : 20/10/2012 at 09:34 AM: The United States, needs to impose high tariffs on Asian products being dumped on U.S. soil. Dumping on United States, markets and thewn bashing the U.S. Dollar needs to be addressed by the U.S. Congress.
Discussion 15 : 20/10/2012 at 08:57 AM: I thought the government sold its rice stocks in big government to government deals. Now Boonsong says it has been sold to private traders at market value. Which is it?? Wake up Khun Boonsong and the rest of the Pheu Thaksin, the rest of the world IS watching and they aren't as gullible as your voter base and the red brethren.
Discussion 16 : 20/10/2012 at 08:49 AM: this regime havent a clue,why have they interfered in a free market.to justify there own claimes to a deal,as a result full scale graft,loss products,the 11000 tonne is just the tip of the iceberg,two months ago 4 million tonne have been unaccountable,thats 20 billion dollars,corruption within the government is widespread and out of control,its up to the corruption agencies to investigate and report,but to whom, the regime ? they dismisses all allegations,so its up to the courts to look after the good interest of the nation and its people and to disband this corupt regime and bring some honesty and good ethics into thai politics
Discussion 17 : 20/10/2012 at 08:15 AM: "Pol Maj Gen Rattapong said the inspection found no sign of irregularities." Yet the story states that 11,000 TONS of rice have gone missing!!! So no sign of irregularities, huh? Just same ol', same ol', business as usual in Thailand. Amazing Thailand, indeed.
Discussion 18 : 20/10/2012 at 07:42 AM: Of course US farmers are over-reacting. They fail to mention the farm subsidies they get from the US government.
Discussion 19 : 20/10/2012 at 07:22 AM: Quote Mr Boonsong said the US Rice Federation's fears were unfounded. The commerce minister said rice would not be dumped because the government sold its stocks to local traders at high prices, the equivalent of US$540-560 (16,600-17,200 baht) per tonne, which was $100 (3,100 baht) higher than prices Vietnam and India sold their stocks at. Thai rice was priced at around $679 (21,000 baht) per tonne on average, an increase of 17.27% compared with last year's price of $579 (17,800 baht). "The scheme doesn't affect rice exports in other countries. On the contrary, they benefit from pledging programmes," he said.
Discussion 20 : 20/10/2012 at 06:39 AM: How can 11000 ton of rice just go missing ? This goverment say that there is no corruption or wrongdoings in this rice scheme . . . . what a joke.

Share your thoughts

More From Bangkokpost.com