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Thai Government Cancels Rice Sale to Indonesia
September 27, 2011

In this file photo a mad stacks rice in Thailand. Thailand’s government has cancelled the sale of 300,000 metric tons of rice to Indonesia. (AP Photo/Apichart Weerawong) In this file photo a mad stacks rice in Thailand. Thailand’s government has cancelled the sale of 300,000 metric tons of rice to Indonesia. (AP Photo/Apichart Weerawong)
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DrDez
5:37am Sep 28, 2011

Hi TEnggara

a lesson on protectionism? naivety? or something else.

The rice purchase scheme in Thailand was/is unwise in my opinion it can have serious market implications but one understands her logic even if one does not agree


Tenggara
8:12pm Sep 27, 2011

The Thai government is trying to fund a major subsidy scheme for their farmers, taking advantage of their pull on the world market (perhaps unwisely). A result of policy promises delivered in democratic elections.

Perhaps there is a lesson to be learned for Indonesian politicians.


DrDez
1:12pm Sep 27, 2011

a little bit of our own medicine perhaps -However I hope that this does not impact on the availability or price for those most in need. Quite a problem potentially


Roland
1:05pm Sep 27, 2011

Ooops, that didn't work all too well. "...But don't blame us...we didn't know. Nobody told us!"

At least the Thais are not as silly as Indonesia selling their product for unreasonable prices. Not like Indonesia who are selling since years huge quantities of their natural resources for chicken(edit) to other countries which goes so far that they have to import then their own demand for high prices (probably even from the same country they sold it too in the first place).


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Bangkok. Thailand’s government has cancelled the sale of 300,000 metric tons of rice to Indonesia agreed under the previous administration that left office last month, although Indonesia’s state procurement body said on Tuesday it had not been informed.

“The Public Warehouse Organisation signed an MOU in the middle of August, which would have become effective when the minister signed the deal, but I didn’t sign,” Thai Commerce Minister Kittirat Na Ranong told reporters, referring to the body that looks after government stockpiles.

“The price does not match the price the government will guarantee farmers, so that deal won’t happen, and we expect Indonesia will understand,” he added.

The new government, formed in August after an election in July, has promised farmers 15,000 baht ($481) a metric ton for paddy from October. Exporters say that could push export prices above $800 a metric ton, versus around $600 now for the benchmark export grade.

Bulog’s CEO, Sutarto Alimoeso, told Reuters he was not aware the government-to-government deal had been scrapped.

“We have not got official information on the cancellation from the Thai government. On the other hand, we have sent a letter to the Thai government to ask for information on progress on the contract,” he said.
        
Reuters