Rice policy is a money-losing fiasco

The government says Thailand will export 8.5 million tonnes in 2013, an increase of 20 per cent over 2012. The Thai Rice Exporters’ Association says the figure is 6.5 million tonnes.

I have been in the rice-export business in Thailand for over 30 years and will place my money on the lower figure from the association. The government has no clue how to solve the problems facing the industry and reduce the huge stocks it is holding. If it discounts prices to be competitive against those of Vietnam, India, Pakistan and Myanmar, it will end up losing US$200-$250 per tonne. Meanwhile, the government’s storage costs increase daily, since it is paying for space, inspections, fumigation and insurance, in addition to a deterioration in rice quality over time. The government is caught between a rock and a hard place and has nowhere to go. 

Rakesh Sodhia

Bangkok