1. CIMA for 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”, Paddy rice 5% broken pledging scheme Unit: Baht/Ton ne (USD/Ton ne) Year Annual Average Price Pledging Scheme Price Price Differece 200 65,771.86,188.8-417.0 (173.0)(185.5)(-12.5) 200 76,405.76,228.9176.8 (192.0)(186.7)(5.3) 200 89,942.26,665.93,276.2 (298.0)(199.8)(98.2)

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

8. High import tariff Tariff rates for rice imports by trading countries CountryTariff rate China65% EU416 EUR/tonne Japan341 Yen/kg US11.20% Source: WTO Secretariat

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

10. Price ladder of Thai Jasmine rice exports to the US Descriptions200620072008 Exporter price (PRX)878 1,002 1,370 Duty – paid price675771 1,054 C.I.F. price607693948 F.O.B. price480562910 Processed good price427527780 Producer level price323392574 Exporter government taxes less subsidies (Tax)000 Cost of production (COP)323392574

11. Price ladder of white rice 25% exports to the Philippines Descriptions200620072008 Exporter price (PRX)599 724 1,686 Duty – paid price461557 1,297 C.I.F. price307371865 F.O.B. price270305609 Processed good price263291539 Producer level price231332505 Exporter government taxes less subsidies (Tax)00 Cost of production (COP)231332 505

12. Price ladder of parboiled rice exports to South Africa Descriptions200620072008 Consumer price503571 1,098 Exporter price (PRX)441501963 Duty – paid price339385741 C.I.F. price339355741 F.O.B. price310340733 Processed good price281308663 Producer level price231332505 Exporter government taxes less subsidies (Tax)000 Cost of production (COP)231332505

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 DecriptionsBMAPCIMA Country – Rice Type200620072008200620072008 The US – Thai Jasmine rice7.867.887.8192.1492.1292.19 The Philippines – White rice 25%25.7125.6925.6274.2974.3174.38 South Africa – Parboiled rice0.20.18099.899.82100

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