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CIMA for the Export of Rice from Thailand

CIMA for the Export of Rice from Thailand. Thawatchai Dechachete 28 October 2009. Outlines. Thailand rice sector Price Ladders Calculation of the CIMA Difficulties Challenges faced and future study. Thailand rice sector. 16 million of Thai people is in the Rice Industry

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CIMA for the Export of Rice from Thailand

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  1. CIMAfor the Export of Rice from Thailand Thawatchai Dechachete 28 October 2009

  2. Outlines • Thailand rice sector • Price Ladders • Calculation of the CIMA • Difficulties • Challenges faced and future study

  3. Thailand rice sector • 16 million of Thai people is in the Rice Industry • Small scaled farmers only 2.4-3.2 hectare per household • Rice production is around 30 million tonne a year • 40% of the production is exported

  4. Mojor markets for Thai Rice • Thailand exports varieties of rice, premium rice (Thai Jusmine Rice), white rice 100%, white rice 10-15%, white rice 25%, parboiled rice. • Major markets for the Thai Jusmine are the US, China, Malaysia. • Major markets for the white rice 25% are the Philippines, Senegal, Ivory Coast. • Major markets for the parboiled rice are Benin, South Africa, Russia

  5. Rice Trade in Thailand • There are 4 persons involved in rice trade; producer, miller, exporter and importer • Rice trade is mostly run by private sector • Although Thai Government provides “the rice pledging scheme”, it is no subsidies to the Thai rice sector

  6. Rice Pledging Scheme”,

  7. Major Trade Barriers for Thai Rice • High import tariff • Monopoly importer • Subsidy in developed countries

  8. High import tariff

  9. Monopoly importer • Quantitative Restriction • Rice Import Specification Restriction • Rice Import Auction

  10. Price ladder of Thai Jasmine rice exports to the US

  11. Price ladder of white rice 25% exports to the Philippines

  12. Price ladder of parboiled rice exports to South Africa

  13. Calculation of CIMA BMA = EDT + MTD + (PLC - PLP) + SPC The US Case EDT = 0, MTA = 11.2% of CIF price, PLC = DNA inspection expenses for Jasmine rice PLP = 0 SPC = rice fuming cost

  14. Calculation of CIMA (cont.) BMA = EDT + MTD + (PLC - PLP) + SPC The Philippines Case EDT = 0, MTA = 50% of CIF price, PLC = 0, PLP = 0 SPC = rice fuming cost

  15. Calculation of CIMA (cont.) BMA = EDT + MTD + (PLC - PLP) + SPC South Africa Case EDT = 0, MTA = 0, PLC = 0, PLP = 0 SPC = rice fuming cost

  16. CIMA • BMAP = BMA/PRX * 100 • CIMA = 1 – BMAP

  17. Summary of the BMAP and CIMA

  18. Difficulties • Estimation of processor and exporter cost • Estimation of meeting standard for export and cost of meeting health and safety standards.

  19. Challenges faced and future study • CIMA cannot explain trade barrier caused by quantitative and product specification policy. • CIMA cannot show the impact from the rice import licensing auction

  20. Thank you very much Thawatchai Dechachete E-mail: dechachete@yahoo.com

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