Japan rejects Thai rice

[dirtydog]

Japan rejects Thai rice

CHAROEN KITTIKANYA BLOOMBERG NEWS
Japan has turned down 60,000 tonnes of rice from Thailand after the asking price nearly doubled in the space of a month, according to the Thai Rice Exporters Association. Sumeth Laomoraporn, a director of the association, said Japan's Agriculture Ministry announced yesterday it bought none of the proposed tenders, saying prices were too high for 41,502 tonnes and the number of bids was insufficient for 21,000 tonnes.

Japan held a tender on Tuesday for 62,502 tonnes of foreign rice with the aim of completing purchases for the fiscal year that ended on March 31.

Thailand on Tuesday offered the Japanese government 100% white rice at US$1,300 per tonne _ up from the $720 it paid in March. It was the first failed tender since Tokyo agreed on minimum access for rice in multilateral trade talks a decade ago. It was also the first time the ministry had to delay a tender until the following fiscal year.

Tuesday's tender for May to August shipments had targeted types of rice the ministry failed to buy during the past nine tenders, to be used in processed foods and alcohol.

However, Mr Sumeth noted that Japan's failed tender did not affect the rice market much since Japan was fully self-sufficient. For wheat, Japan needs to import about 90% of its supply.

On top of that, Japan's rice imports are made only to honour its WTO commitment, which requires Japan to buy 770,000 tonnes of foreign rice a year.

Rice imports are almost all done by the Agriculture Ministry, with local users often avoiding other channels due to high tariffs imposed to protect the market for locally produced short-grain rice.

In Japan, rice is sold at the supermarket for around 1,700 yen (510 baht) per five kilogrammes, about 8 to 10 times the cost of the same type sold in Hong Kong.

''The failed tenders in Japan is completely different from the failed ones conducted by the Philippines, which intends to buy rice to ensure adequate consumption demand in the country,'' said Mr Sumeth. ''Japan's rice production is fully self-sufficient. ''

The price of rice from Thailand, the world's No. 1 exporter, has more than doubled this year due to concerns about supply after India banned exports of non-basmati rice and Vietnam restricted rice shipments.
Rice prices jumped to a record yesterday as World Bank officials expressed concern that pressure was growing in Thailand to restrict sales. Rice contracts gained 2.3% to $24.745 per 100 pounds on the Chicago Board of Trade.

Bangkok Post

[sabang]

If food shortages are to be the order of the day, then Japans highly protected domestic rice growing sector is looking like a pretty enlightened policy.

[blackgang]

And they can buy "jap" [short grain] from the states a lot cheaper that they can get Thai .
US used to give it to Korea if they paid the freight.

[stroller]

That's doubled in price as well, if the Walmart article is anything to go by.

[Texpat]

My experience is that Japanese would only eat Thai rice if there was no way to get their own, koshihikari. They're very fussy about their rice.