After losing the crown of world’s top rice exporter, Thailand is again eyeing to retake its crown of world’s top rice exporter this year.
Rice Pledging Scheme started in 2011, by former Prime Minister Yingluck Shinawatra who to win the rural votes she needed to take office in 2011 offered farmers up to 50 percent above market rates for their rice.
This Scheme has left Thailand with around 18 million tonnes of over-priced rice and Yingluck skewered by a corruption charge.
In 2012, Thailand was hit by the India as the world’s top rice exporter as the grain hording in Thailand has hit the prices of rice in the global market.
Indian and Vietnam has swiftly grown in the global market and has crumble the Thailand’s market share.
India in a race to become world’s top rice exporter has moved its own rice for export.
The Thailand is now govern by the junta who now have seized the rice pledging scheme and has now to soften the rice prices is flogging stockpiles around $450 a tonne — comparable to India and Vietnam.
Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association said that the Thailand will soon regain its lost title of the world’s top rice exporter.
From January this year to September, Thailand has sold the seven million tonnes of the grain — already more than for the whole of 2013 — according to Chookiat.
By the end of this year it will sell about 10 million tones of rice.
Experts have called the farmers to grow more rice of high quality.
Darren Cooper, senior economist at the London-based International Grains Council, said that by 2014 it will lead India in the world’s top rice exporter as it is slowly regaining its lost African Market such as Nigeria, Ivory Coast and Ghana.
Thailand Junta are talking on the kingdom’s subsidy culture including rice and other crops like rubber for export.Also they are paying to most of the farmers who were left out of their pocket as bank refused to provide them financial help to avoid continuation of the rice pledging scheme
Paitoon Urairong, deputy director general of the rice department at the Ministry of Agriculture and Cooperatives said that they are requesting the companies and corporations to cut the rice prices and they request the companies to agree upon this.
Hiroyuki Konuma, regional representative for Asia and the Pacific for the UN Food and Agriculture Organization said that it is much better to provide the farmers with the inputs like seeds and other agricultural input, Hiroyuki also lauded a shift towards grains with higher market prices such as jasmine and organic rice.
Yingluck was found guilty of negligence linked to the scheme and now could face impeachment proceedings that may see her banned from politics.
But she denies the charges and said that it was a beneficial attempts to the raise the income of the rural farmers in the Thailand.
According to Darren Cooper, farmers need to invest an average of 6,500 baht ($200) per rai (1,600 square metres) to produce 800 kilogrammes of rice.
That harvest is worth between 7,000 to 8,000 baht, well below a decent 10,000 baht return, he explains.