More price supports for
Thailand's rice farmers
in the face of falling world prices?
By Jon Fernquest 
Some
important facts: 1.
Worldwide the price of rice is falling.
2. Thailand is the world's leading exporter of rice.
3. The red-shirt social movement claims to represent Thailand's poor farmers.
2. Thailand is the world's leading exporter of rice.
3. The red-shirt social movement claims to represent Thailand's poor farmers.
How the Thai government reacts to this situation has potentially great political importance.
Today's article is about developments in world rice markets and how the Thai government might respond to these developments with its crop insurance program.
The crop insurance program provides farmers with guaranteed prices and income during times of declining prices.
Since prices are falling rapidly farmers are asking for government help and also want guaranteed prices to change immediately to reflect what market prices are right now.
Today's article begins after the vocabulary:
price supports - a
system to prevent
prices from falling (to keep prices at or above current level)
social movement - "large informal groupings of individuals and/or organizations focused on specific political or social issues" (See Wikipedia)
developments - changes that happen in a situation over a period of time
insurance - a system of protection against loss, a person pays money every month (premiums) for a guarantee that the company will pay them money if they or their property is damaged or lost (See Wikipedia) การประกันภัย
crop insurance - insurance protecting farmers against the loss of their crops due to natural disasters, such as drought and floods, or the loss of revenue due to declines in the prices of agricultural commodities (See Wikipedia) การประกันผลผลิตทางการเกษตร
guaranteed - will definitely happen or exist
immediately - very quickly without delay
X reflects Y - X shows Y (X shows that Y exists or X shows the nature of Y)
right now - at this moment or instant (immediately, very quickly without delay)
potentially X - X may be true in the future but is not true now
social movement - "large informal groupings of individuals and/or organizations focused on specific political or social issues" (See Wikipedia)
developments - changes that happen in a situation over a period of time
insurance - a system of protection against loss, a person pays money every month (premiums) for a guarantee that the company will pay them money if they or their property is damaged or lost (See Wikipedia) การประกันภัย
crop insurance - insurance protecting farmers against the loss of their crops due to natural disasters, such as drought and floods, or the loss of revenue due to declines in the prices of agricultural commodities (See Wikipedia) การประกันผลผลิตทางการเกษตร
guaranteed - will definitely happen or exist
immediately - very quickly without delay
X reflects Y - X shows Y (X shows that Y exists or X shows the nature of Y)
right now - at this moment or instant (immediately, very quickly without delay)
potentially X - X may be true in the future but is not true now
Economics
Rice farmers want prompt help
Prices falling and export orders delayed22/04/2010
Phusadee Arunmas and Wichit Chantanusornsiri
Rice farmers are calling for immediate help from the government, as domestic prices have fallen significantly on higher output, while foreign importers are delaying purchases on expectations prices will fall further.
Without new measures, rices of local paddy will definitely fall further, said Prasit Boonchuey, president of the Thai Farmers Association.
prompt
- immediate or quick ทันที
domestic - within the country ในประเทศ
significantly - in an important way อย่างสำคัญ
expectations - whst people believe will happen การคาดคะเน
measures - actions taken to solve a problem มาตรการ
local - in the area you live in, in the small area you are talking about ท้องถิ่น
paddy - rice after it has been harvested from the field ข้าวเปลือก
domestic - within the country ในประเทศ
significantly - in an important way อย่างสำคัญ
expectations - whst people believe will happen การคาดคะเน
measures - actions taken to solve a problem มาตรการ
local - in the area you live in, in the small area you are talking about ท้องถิ่น
paddy - rice after it has been harvested from the field ข้าวเปลือก
The association also wants the government to increase benchmark prices based on the current market prices.
The government currently sets the benchmark for its rice price insurance programme based on the prices of the previous week.
The benchmark for 15% moisture paddy is now 9,142 baht per tonne. Farmers are entitled to receive compensation at 858 baht a tonne, as the benchmark is below the insured price of 10,000 baht.
benchmark
- a standard that other things can be compared to and measured by
current - of the present time ปัจจุบัน
market price - price at which supply equals demand in a market [this "market clearing price" means all goods offered at this price are sold]
insurance - a system of protection against loss, pay small amounts now in order to get larger payments in the future if some bad event happens and causes damage (See Wikipedia) การประกันภัย
entitled - having the right to have or do something มีสิทธิโดยชอบ
compensation - money that someone receives because something bad has happened to them เงินชดเชย
current - of the present time ปัจจุบัน
market price - price at which supply equals demand in a market [this "market clearing price" means all goods offered at this price are sold]
insurance - a system of protection against loss, pay small amounts now in order to get larger payments in the future if some bad event happens and causes damage (See Wikipedia) การประกันภัย
entitled - having the right to have or do something มีสิทธิโดยชอบ
compensation - money that someone receives because something bad has happened to them เงินชดเชย
According to Mr Prasit, paddy with 20% moisture is now quoted in the market at only 5,000 to 5,500 baht per tonne, with 15% moisture paddy at 7,000 baht. Before the Songkran festival, 20% moisture paddy was quoted at 5,800 to 6,300 baht, and 15% moisture at 8,000 baht.
Mr Prasit said exporters had been cutting their prices to remain competitive with rival countries, causing local prices to fall.
The price of local milled rice has also fallen from 19,000 baht a tonne in December to 11,800 baht now.
Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said prices have been falling every day, as foreign buyers delay purchases. They believe prices have more room to fall because of high supplies and massive milled rice stocks now held by the Thai government.
quote, quote a price (verb)
- say what
price a good is being sold for
competitive - involving competition มีการแข่งขัน
rival - a person you are competing against or opposing คู่แข่ง
rice mill - a factory where harvested unhusked rice is processed and prepared so that it can be used as food and sold in a store
milled rice - rice already processed in a mill, ready to sell ข้าวสารที่มีการขัดสี
honorary, honorary title - title or position given to a person as an award to honour them (did not earn the title or position in the usual way and may not be paid for it)
delay - to make something happen at a later time than originally planned or expected เลื่อน
support prices - prevent prices from falling (keep prices at or above current level)
massive - very large in size, amount or numberใหญ่โต, มหาศาล
stocks - large amounts stored for future use
competitive - involving competition มีการแข่งขัน
rival - a person you are competing against or opposing คู่แข่ง
rice mill - a factory where harvested unhusked rice is processed and prepared so that it can be used as food and sold in a store
milled rice - rice already processed in a mill, ready to sell ข้าวสารที่มีการขัดสี
honorary, honorary title - title or position given to a person as an award to honour them (did not earn the title or position in the usual way and may not be paid for it)
delay - to make something happen at a later time than originally planned or expected เลื่อน
support prices - prevent prices from falling (keep prices at or above current level)
massive - very large in size, amount or numberใหญ่โต, มหาศาล
stocks - large amounts stored for future use
The government is estimated to hold 5.6 million tonnes of milled rice bought from farmers to support prices in previous seasons.
Mr Chookiat said new purchase orders for parboiled rice from Africa were also inactive, as African countries have maintained sufficient rice stocks and also hold rice substitutes such as corn and wheat.
The rice price outlook will be determined by positive factors like the impact of widespread drought and the outlook for other cereals.
Thai rice prices, the benchmark for Asia, have slumped 5.5% from two weeks ago on lower demand.
support
- help, by giving money, for example สนับสนุน
purchase - buy
purchase orders - an order to buy goods and services, "a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer" (See Wikipedia)
parboiled rice - rice that is boiled until partially cooked ข้าวต้มสำเร็จรูป
maintained - kept at the same level (not allowed to increase or decrease)
sufficient - enough พอเพียง
X substitute - something that can be used instead of X
rice substitute - something that can be used instead of rice (for example: wheat)
outlook - what people think will happen in the future อนาคตที่คาดไว้
X determined by Y - Y causes X
positive - good ที่ดี, hopeful and confident, or giving cause for hope and confidence ซึ่งมองในแง่ดี
factor - one of the things that effects a situation, event or decision ปัจจัย
impact - the effects of an event, the good and bad changes it will cause ผลกระทบ
widespread - happening or existing in many places, or affecting many people อย่างแพร่หลาย
drought - a period when there is very little rain or water in an area (See Wikipedia) ความแห้งแล้ง
cereal, grain, cereal grains - a crop such as wheat, corn, or rice used as food (See Wikipedia)
slump - decrease, fall
demand - the need and desire to buy goods and services by households and businesses
purchase - buy
purchase orders - an order to buy goods and services, "a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer" (See Wikipedia)
parboiled rice - rice that is boiled until partially cooked ข้าวต้มสำเร็จรูป
maintained - kept at the same level (not allowed to increase or decrease)
sufficient - enough พอเพียง
X substitute - something that can be used instead of X
rice substitute - something that can be used instead of rice (for example: wheat)
outlook - what people think will happen in the future อนาคตที่คาดไว้
X determined by Y - Y causes X
positive - good ที่ดี, hopeful and confident, or giving cause for hope and confidence ซึ่งมองในแง่ดี
factor - one of the things that effects a situation, event or decision ปัจจัย
impact - the effects of an event, the good and bad changes it will cause ผลกระทบ
widespread - happening or existing in many places, or affecting many people อย่างแพร่หลาย
drought - a period when there is very little rain or water in an area (See Wikipedia) ความแห้งแล้ง
cereal, grain, cereal grains - a crop such as wheat, corn, or rice used as food (See Wikipedia)
slump - decrease, fall
demand - the need and desire to buy goods and services by households and businesses
(Source: Rice farmers want prompt help, Prices falling and export orders delayed, 22/04/2010, Phusadee Arunmas and Wichit Chantanusornsiri, link)
