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Thailand: Market for milled rice considered
The government is considering setting up a central market for milled rice as another distribution channel for rice traders and farmers.
Commerce Minister Apiradi Tantraporn said the country has no central market for trading milled rice despite the fact that Thailand is a leading producer and exporter, averaging 20 million tonnes of milled rice a year.
She noted the example of the Sanyanqiao Grain and Oil Wholesale Market, a large-scale central market for cereals in Guangdong province, China, operated by the Guangtie Sanyanqiao Grain Goods Yard.
The Guangdong market spans 100,000 square metres, handling trading services for 2.5 million tonnes of cereals a year.
Mrs Apiradi said the Commerce Ministry would soon invite all related stakeholders including exporters, millers, farmers and state officials to discuss the possibility of setting up such a central market for milled rice in Thailand.
If the idea is received positively, she said the ministry would further pursue an investment format, management structure, a proper location, logistics development and a payment system.
“We hope the new central market for milled rice will enable exporters, millers and farmers to directly meet with potential buyers,” said Mrs Apiradi. “The central market will also require rice quality inspection, helping ensure transparency in trading.”
Currently, Thailand only has a central market for rice paddy.
Mrs Apiradi said the presence of a central market for milled rice will further help strengthen the local economy as ambitiously planned by the government.
The cabinet last week gave the nod to the Budget Bureau’s proposal to earmark additional mid-year funds for fiscal 2017 worth 190 billion baht.
According to Budget Bureau director-general Somsak Chotratanasiri, of the total additional mid-year budget, 27 billion baht will be funded through taxes and other state income, while the remaining 162 billion will be generated through borrowing, whereby the Finance Ministry will issue savings bonds.
The proceeds from the government bonds will be earmarked for provincial development and to stimulate the economy in local communities.
Some 100 billion baht will be allocated for local development in 18 clusters of provinces, while the rest will go towards Village Fund development.
Around 500,000 baht per village is planned under the scheme. The proposal will be filed in January for vetting by the National Legislative Assembly.
The commerce minister, who returned from China on Sunday, said Thailand aims to raise rice shipments to China by not less than 10% in the coming year.
Last year, Thailand exported 931,447 tonnes of rice to China, up 27%, worth US$477 million (1.7 billion baht), up 19.4% year-on-year.
For the first 10 months of this year, Thailand’s rice exports to China totalled 640,856 tonnes, down 10.8%. Those exports were valued at $323 million, down 11.5% year-on-year.
Thailand was the second-biggest rice exporter to China, trailing Vietnam.
Source: http://www.bangkokpost.com/business/news/1158777/market-for-milled-rice-considered