Rice: Govt purchases of 1st crop finished

Govt purchases pushed price of rice inside country up 5%. Only 100 billion of 400 billion in rice bought due to flood damage. Govt aims to break even.

Click button to listen to Rice Pledging First Crop Finished to download

Main-crop rice pledging now finished

State sets minimum prices for supply sales
2/03/2012
Phusadee Arunmas

The Commerce Ministry plans to sell the government's white paddy stockpile at a minimum price of 11,000 baht a tonne or 15,500 baht for milled white rice, says permanent secretary Yanyong Phuangrach.

The price for Hom Mali rice must be at least 29,000 to 30,000 baht a tonne.

The ministry on Wednesday wrapped up its pledging scheme for the main crop, adding 6.7 million tonnes of paddy to its stockpiles at a cost of 140 billion baht.

Commerce Minister Boonsong Teriyapirom earlier said the ministry's ultimate goal is to at least break even in the pledging scheme.

The price of white rice may be low, but it is aimed at receiving a premium price for Hom Mali rice, he said.

The ministry accepted a total of 3.06 million tonnes of Hom Mali rice, 2.9 million tonnes of white rice, 440,000 tonnes of glutinous rice and 300,000 tonnes of provincial Hom Mali rice.

The government paid farmers 100 billion baht for the guaranteed price and another 40 billion baht for storage and management fees.

The amount is lower than the initial projection of 400 billion baht, as paddy output was damaged by last year's flooding.

Mr Yanyong said even though the government plans to accept all grains into the scheme, farmers could still choose to sell their harvest in the market and therefore lower the amount entering the scheme.

However, the ministry hailed the project as a success, as it helped push the domestic paddy price up by an extra 1,500 to 2,000 baht a tonne and 5% rise in the domestic price compared with the 2010-11 season.

Mr Yanyong said the global price stood at US$550-600 a tonne for white rice and $1,100 for Hom Mali.

He said these are appropriate levels, as the ministry is confident Thailand can sell rice its rice later this year after competitors such as Vietnam and India are running low on supply.

Mr Yanyong insisted that the government's plan to offload the stock will not jeopardise domestic prices, but it also will not focus on maximising profits.

Choices include government-to-government deals at an appropriate price, exchanging rice for other goods and open bidding in the market.

The government yesterday kicked off the scheme for a second rice crop until the end of June, with expectations of reaching 8 million tonnes.

(Source: Bangkok Post, Main-crop rice pledging now finished, State sets minimum prices for supply sales, 2/03/2012, Phusadee Arunmas, link) 

Rice Sector Vocabulary

main-crop - the first and most important crop of rice that farmers grow during the year (second and third crops may follow depending on whether there is enough water)
rice pledging - the government system for making sure that farmers get a good price for the rice that they grow
minimum prices - the lowest possible price that can be paid

main-crop rice pledging now finished
state sets minimum prices for supply sales

paddy - rice after it has been harvested from the field  ข้าวเปลือก
stockpile - large quantities of goods stored for future use คลังสินค้า  จำนวนสินค้าที่เก็บตุนไว้เป็นจำนวนมาก

The Commerce Ministry plans to sell the government's white paddy stockpile at a minimum price of 11,000 baht a tonne or 15,500 baht for milled white rice, says permanent secretary Yanyong Phuangrach. The price for Hom Mali rice must be at least 29,000 to 30,000 baht a tonne.

ministry - a government department dealing with an area of activity กระทรวง
wrapped up - finished
scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
pledging scheme
stockpiles - large amounts of something stored for future use กองสินค้าในโกดัง
ultimate - the final result after a long series of events
ultimate goal - the final goal (after many events)
break even - not lose money, but not make money; zero profit
at least break even -

The ministry on Wednesday wrapped up its pledging scheme for the main crop, adding 6.7 million tonnes of paddy to its stockpiles at a cost of 140 billion baht. Commerce Minister Boonsong Teriyapirom earlier said the ministry's ultimate goal is to at least break even in the pledging scheme.

premium - special; with special features  
premium price - a special high price for a product with special features
glutinous rice - sticky rice

The price of white rice may be low, but it is aimed at receiving a premium price for Hom Mali rice, he said. The ministry accepted a total of 3.06 million tonnes of Hom Mali rice, 2.9 million tonnes of white rice, 440,000 tonnes of glutinous rice and 300,000 tonnes of provincial Hom Mali rice.

guaranteed - promised that they will get something, for sure
guaranteed price - a price that someone promises you will get when you sell
storage - the putting and keeping of things in a special place for use in the future การเก็บ
fees - money that you pay to be allowed to do something ค่าธรรมเนียม
storage fee - the fee you pay to someone for storing your rice for a period of time
initial - first; happening at the beginning of a process ในเบื้องต้น
projection - guessing a future amount; a calculation or guess about the future based on information that you have การคาดคะเน
harvest - gathering fully grown crops from the field เก็บเกี่ยว การเก็บเกี่ยวผลผลิต

The government paid farmers 100 billion baht for the guaranteed price and another 40 billion baht for storage and management fees. The amount is lower than the initial projection of 400 billion baht, as paddy output was damaged by last year's flooding.  Mr Yanyong said even though the government plans to accept all grains into the scheme, farmers could still choose to sell their harvest in the market and therefore lower the amount entering the scheme.

hailed - said publicly how good something is; praised โห่ร้องสนับสนุน ยกย่อง
hailed the project as a success - praise something, saying it was successful
domestic - within the country ภายในประเทศ
domestic paddy price
global - throughout the world ทั่วโลก
global price

However, the ministry hailed the project as a success, as it helped push the domestic paddy price up by an extra 1,500 to 2,000 baht a tonne and 5% rise in the domestic price compared with the 2010-11 season. Mr Yanyong said the global price stood at US$550-600 a tonne for white rice and $1,100 for Hom Mali.

confident - being certain of your abilities or of having trust in people, plans, or the future มั่นใจ
running low on supply - have a small amount of a good left for sale (almost gone)

He said these are appropriate levels, as the ministry is confident Thailand can sell rice its rice later this year after competitors such as Vietnam and India are running low on supply.

insisted - say firmly that something must happen or is true, and will not change mind
stock - an amount of something that you keep so that you can use it when you need it ที่เก็บไว้ในสต๊อก
offload stock - sell the commodity that you have been storing
jeopardise - create a situation with possible loss
focus - the main thing it is concerned with ให้ความสำคัญ think about and work on one thing (rather than waste time on many), concentrate time and attention on one thing
maximising profits - trying to get as high a profit as possible

Mr Yanyong insisted that the government's plan to offload the stock will not jeopardise domestic prices, but it also will not focus on maximising profits.

bidding - making an offer in an auction (here trying to offer to do project for lowest cost and thus win contract)
open bidding - no secret or hidden bidsm, everyone can see all the bids and the high bid that wins the auction (so can purchase the item being auctioned)
kicked off - started
expectations - การคาดคะเน

Choices include government-to-government deals at an appropriate price, exchanging rice for other goods and open bidding in the market.  The government yesterday kicked off the scheme for a second rice crop until the end of June, with expectations of reaching 8 million tonnes.