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18th december,2013 daily international rice e newsletter by riceplus magazine
1. 18th December , 2013
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USDA estimates more broken records for rice
U.S. and global rice producers broke a number of records during the 2013-14 marketing year, and there could be
more of the same for next year, according to Nathan Childs, senior rice market analyst, USDA’s Economic Research
Service, speaking at the USA Rice Outlook Conference in St. Louis, Mo.Global rice production is projected as a
record in 2013-14, according to Childs, at about 473 million tons. Cambodia, Thailand, Egypt, Burma and Indonesia
all produced bigger crops, while Australia, China and the United States produced smaller crops.India meanwhile, has
been having weather problems in its eastern regions, and its production estimate is likely to be taken lower.Child’s
update on the rice situation was given several days prior to USDA’s Dec. 10 estimates on crop production and
supply and demandCambodia, Thailand and Vietnam produced record or near-record crops in 2013-14, most on
acreage expansion, which was driven by high support prices, noted Childs. “Yield is slightly down.”
With that many countries doing so well, “it’s no surprise that global supplies are the highest on record,” Childs said.
“That’s the ninth consecutive year of larger global supplies.”Global consumption is also at a record high, about equal
to production. Bangladesh, China, Egypt, India, Southeast Asia and West Africa are mostly responsible for the
increase.
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3. Stocks building again
Global ending stocks “are up a little bit, but we have had seven consecutive years of increasing global ending
stocks,” Childs said. “The global stocks-to-use ratio, however, is still at a comfortable 20 percent. That is not high.
The huge stocks that hung over the market at the turn of the century no longer exist, but we are building stocks
again.”Estimated U.S. rice stocks are down slightly, while Thailand has record stocks of about 15.5 million tons.
“Thailand accounts for most of the increase in global stocks. They have more than a 100 percent stocks-to-use
ratio.”Childs expects a near-record 39 million tons in rice trade in 2013-14, on abundant exportable supplies and
falling prices. “Brazil, Cambodia, Thailand and Vietnam have all increased exports. We have weaker shipments from
India and the United States.”
Childs expects record imports in West Africa and China, “and that’s one reason why trade has been so high the last
few years.”The U.S. rice price difference over Thailand, at $160 a ton, is the largest on record, noted Childs. “It’s
unlikely for that to be sustainable.”
More of the same for 2014?
For 2014-15, Childs sees little change in global rice area, slightly higher average yield, another record crop and
record total use. “We expect lower trading prices and greater trade. Top importers include west Africa, China and the
Middle East.”In 2013-14, U.S. rice production declined about five percent from the previous year due to smaller
area. But many states had record yields. Acreage, the smallest since 1987-88, was due to better revenue in competing
crops, unfavorable conditions at planting and water restrictions in Texas.U.S. rice yields were a record in 2013,
noted Childs, for long grain and medium and short grain. “Most southern states had near records. Louisiana had a
record yield. Texas yield, at 8,400 pounds (with a ratoon crop) was the largest ever for a southern crop. Missouri
produced a near-record crop, while California yields were solid. The higher yields were due to the adoption of hybrid
seeds in much of the Mid-South and favorable weather during the season.”U.S. production declined due to lower
acres with two states, Arkansas and Missouri, accounting for all of it. All of the decline was in long grain. Mediumand short-grain acreage increased.
Domestic use down
Domestic rice use is down about 4 percent, according to Childs. “It’s been lower the last few years, but we’re not
sure why. We expect exports to drop about 7 percent – on a smaller crop, and the fact that we’re not very price
competitive. We expect the decline to come from Latin America and Sub-Saharan Africa. The medium grain market
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4. is more stable.”Long-grain exports are down about 11 percent, all in the milled category. “We’re not as price
competitive. We’re starting to see some competition from Asia in the Western Hemisphere. With a $160 premium,
that would be expected.”U.S. ending stocks are declining, and are down about 15 percent this year, according to
Childs. “It’s not a dangerous stocks-to-use ratio. It’s still comfortable, but they are dropping.”Smaller supplies are
the primary driver in the U.S. farm price outlook for rice, according to Childs. “Despite larger supplies, we do expect
a slightly higher rice price in 2013-14.”
More acres in United States in 2014
For 2014-15 in the United States, Childs projects a big increase in long-grain area, mostly in the Delta. “We see little
change in medium- and short-grain. We see another record yield for both classes of rice. In the South, this is driven
by the hybrids.”Childs projects that domestic use and U.S. exports will recover in 2014-15, on a larger crop and a
larger residual. “We see expanded trade mostly in the Western Hemisphere. We see a big increase in long-grain
exports, larger supplies, lower prices, another year of record global trade and a small increase in ending stocks. For
medium- and short grain, we see lower global trading prices, but a steady market.”
Palay, corn production in NorMin post growths in Q3
BY: APIPA P. BAGUMBARAN
Thursday 19th of December 2013
CAGAYAN DE ORO CITY, Dec. 19 (PIA) – Palay production in Northern Mindanao posted improvement in
the third quarter of 2013 as it grew by 19 percent compared to the production in the same quarter in 2012.Total
palay produced in the region increased from 151,278 metric tons last year to 180,481 metric tons this year with
both irrigated and rainfed palay posting growths, Engr. Cecilio Y. Clarete, chief economic development
specialist of the Development Research Division of National Economic and Development Authority (NEDA) in
the region said in a media forum held recently at the NEDA Conference Room. He said the positive
performance was attributable to the good production in the provinces of Bukidnon, Camiguin, Lanao del Norte
and Misamis Occidental.
The 79 percent production increase in Lanao del Norte was due to sufficient rainfall which benefited the
province’s rainfed/upland production areas as well as to the movement of harvest to the third quarter, Clarete
said. He further said that the completion of the repair of irrigation canals also contributed to the 35 percent
increase palay production in Misamis Occidental in addition to the early plantings harvested during the quarter
and more rainfed/upland areas cultivated in Bonifacio, Tangub and Ozamiz City.Clarete said the region’s
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5. average yield also improved by 4.74 percent from 4.59 to 4.78 tons per hectare in irrigated areas and 3.15 to
3.26 tons per hectare in rainfed areas.Yield improvement was most notable in Camiguin, Lanao del Norte and
Misamis Occidental.
Clarete said the positive yield was due to sufficient irrigation water, lesser occurrence of infestation of diseases
and pests, and use of high yielding variety of seeds.Lanao del Norte also benefited from the rice rattooning
especially in areas covered by the National Irrigation Administration and communal irrigation system, he
added.Overall, the total value of palay for the third quarter amounted to P3.072 billion, up by 24 percent, as a
result of the increased production volume and rise in the average farm gate price from P16.36 to P17.02 per
kilogram.Meanwhile, corn production in the region went up by 13 percent reaching 508,581 metric tons in the
third quarter of 2013.
Increases were more pronounced in Bukidnon and Camiguin for both white and yellow corn varieties.The 200
percent increase in yellow corn production in Lanao del Norte was due to the shifting by some farmers from
white corn to yellow corn.Clarete said the average corn yield also grew by 5.52 percent with Lanao del Norte
posting the lowest increase in yield by only 0.63 percent due to the hot weather condition during the
reproductive stage in some municipalities of the province.Although some corn farmers in Misamis Occidental
shifted to commercial and cash crops, and those in Misamis Oriental to pineapple, palm oil, passion fruit and
tobacco, Clarete said both provinces still managed a positive yield due to sufficient rainwater, less prevalence of
pests and diseases and favourable weather, and increase usage of RR seeds. (APB/PIA-10)
Vietnam hopes TPP will bring more rice orders from the US
VietNamNet Bridge – The rice exports to the US now only account for 10 percent of Vietnam’s total rice
exports. However, the figure is believed to increase
sharply once
the Trans Pacific Partnership Agreement (TPP) is
inked.A report
by the Vietnam Food Association (VFA) showed
that the rice
exports to America in the first 11 months of the
year
accounted for 7.02 percent of the total exports. The
sharp increase
of 37.66 percent in exports over the same period of
the last year
has been explained by the increased demand from
non-Cuba
markets, including the US, Haiti, Mexico and
Chile.In the
past, Cuba was the major American export market
for
Vietnamese rice exporters, who provide rice under
the contracts
signed by the governments.
VFA believes that Vietnamese businesses can develop the American market with their competitive export
prices. specially, it can see the opportunities to boost exports to the US once both the US and Vietnam become
the members of TPP.Besides the US, the other four countries in America, including Canada, Chile, Peru and
Mexico are also negotiating for TPP.Explaining the above said high growth rate, the director of a rice export
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6. company said Vietnam’s rice has become well competitive with Thai rice, which once dominated the
market.According to the businessman, Mexico, Brazil and the US need high quality 5 percent broken rice with
higher requirements than some Asian and African markets in terms of the quality and packaging.Duong Ngoc
Minh, President of Hung Vuong Seafood Company, a farm produce supplier to the Asian people’s markets and
supermarkets in the US, noted that the restaurants in the US now favor white rice from Vietnam instead of Thai
rice because Vietnam’s rice is suitable to different ways of cooking.According to Minh, the retail price the
restaurants have to pay for high quality white rice is about $1,000 per ton.
Meanwhile, Vietnam’s five percent broken rice has been exported at $420 per ton only.Not only the US, but
Japan is also believed to become a big client for Vietnam once the TPP is signed, despite the warnings that
Japan would keep high protection over its agriculture production.VFA has officially requested the government
to “prepare to penetrate the US and Japanese markets once TPP negotiations finish.”The association has
estimated that the rice exports in 2013 would drop to the 3-year deepest low. The export amount decreases by
1.12 million tons in comparison with 2012, while the average export price decreases by 14.53 percent.The sharp
decreases in both the export quantity and export turnover have been attributed to the weak demand from loyal
markets in South East Asia in the second half of the year. There is no demand from Indonesia, while the orders
from the Philippines and Malaysia have decreased sharply.However, VFA said Vietnam still can sell out all of
its merchandise rice in 2013 because of the rising demand from China. It is estimated that 1.5 million tons has
been exported to China so far this year.In December, it exported 500,000 tons of rice, raising the total export
volume in 2013 to 6.6 million tons, far below the targeted 7.5 million tons.
Mai Chi
Tags:TPP,rice export,
TDRI proposes disposal of rotten pledged rice
Wednesday, 18 December 2013By NNT
BANGKOK, 17 December 2013 The Thailand Development Research Institute (TDRI) has proposed that a
new government issue a law requiring warehouse owners to burn rotten pledged rice found in their silos, in
order to prevent corruption in the scheme. The TDRI also pointed out the upcoming government can discard the
rice pledging program, but the process must be done gradually, otherwise rice prices would drop sharply. Mr.
Nipon Puapongsakorn, a TDRI honorary member, made the comments at a recent seminar on 'Future of Thai
rice in the Global Arena', organized by the Thai Rice Foundation under the Royal Patronage.He stated that the
new government needs to urgently examine the amount of stockpiled rice, saying without the exact figure of
rice in store, the country would have to unnecessarily spend higher amount of money on maintenance and face
depressed prices for the whole stock. He also said that the lack of reliable pledged rice inspections would likely
attract corruption.Thus, he advised the government to check the stockpiled rice both in lists and in silos, to
ensure the accuracy of the data which would be used to formulate an efficient rice clearance plan.
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7. BAAC union proposes end to rice scheme
December 18, 2013 2:10 pm
Bank for Agriculture and Agricultural Cooperatives' labour union Wednesday hosted a press conference,
saying the bank now has only Bt12 billion cash to cover the rice-pledging scheme.The union said that the
amount would be sufficient to cover the pledging until the end of this month. It also urged for the
abolition of the scheme and proposed rice mortgages. Some farmers may be enlisted for rice pledging. It
said that this would lower the rice price, to be more in line with market prices.
Minister promises to resolve levy rice issue.
MYSORE : In an effort to control the damage, co-operation minister H S Mahadev Prasad on Wednesday warned
the whole sale rice sellers and mill owners not to exploit the present situation to make more money and said
government will initiate stringent action against the black marketers and hoarders.At an urgently summoned meeting
this morning, minister urged the rice mill owners and whole sale dealers to file their stock details by Thursday
morning."Otherwise we will be forced to take action," he added urging rice sellers not to create any artificial scarcity
of the commodity and fleece the consumers.Minister told the millers and dealers that government does not want to
make the farmers and consumers to suffer and with this intention it has increased and imposed the levy rice quota. At
the same time, government does not want its much publicized "Anna Bhagya" (free rice scheme) to suffer, he
added.Minister said the mill owners are demanding the government to reduce the levy quota and fix it on the basis of
average three months mill production and not on a month's average. They are also demanding the government to
provide more rate for the levy rice bought from mills. Minister said the government levied 1.5 lakh tons of rice every
year and it collected only one-third of it. Now, with the implementation of Anna Bhagya scheme, the government is
forced to hike the levy quota from 1.5 lakh tons to 13.5 lakh tons, he pointed out disclosing that he will apprise the
minister and chief minister about the mill owners' predicament as majority of the mills which produce coarse rice are
from Mysore region.
Minister said he is optimistic of resolving the issue as he very well knew the millers and governments predicament
and problems. He also urged the rice sellers desist from buying rice from the BPL families supplied to them by the
government under Anna Bhagya scheme.Mill owners airing their grievances said the Mysore region accounted for
25 per cent of the rice against North Karnataka's 75 per cent production , but due to non-imposition of levy on North
Karnataka millers following their producing fine quality rice they are out of its ambit . This discriminatory approach
should be rectified they said. Mill owners said it is not only the consumers, even 3,000-4,000 workers working in
these mills will be rendered jobless if the mills are closed as millers does not want to lose money, they complained.
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8. Food and civil supplies deputy director Rameshwarappa said that at present there is no reason to worry on the
consumers' front as the stocks will last for another six-seven days. "I have suggested the dealers to get rice from
neighboring states," he disclosed, pointing at the decline in the flow of rice to open market in Mysore and other
towns in the district . In reply to a question from a reporter, Minister said there is a provision in the law to impose
levy and if the millers are not satisfied let them question the levy collection in the court of law. "Government has
powers to collect and impose levy on millers," he claimed and said governments in the past have imposed levy.
Karnataka State Rice Mill Owners' Association call off three-day
strike
Naheed Ataulla,TNN | Dec 18, 2013, 09.09 PM ISTBANGALORE:
The Karnataka State Rice Mill Owners' Association's threeday strike has been called off with the state government agreeing to their demand to reduce the levy rice quota from
five lakh tonne to 2.5 lakh tonne annually. The 1,800 rice mills, which had shutdown from Monday, will resume
functioning from Thursday. Continuation of the strike would have impacted the price and availability of rice in the
open market. Association general secretary H Srinivasa Rao saidministers Dinesh Gundu Rao, HS Mahadeva Prasad,
TB Jayachandra and Shamnur Shivashankarappa held two-hour discussions with the rice millers on Wednesday
before an agreement was reached. Of the 2.5 lakh tonne levy rice to be given to the government for the Anna Bhagya
scheme, the millers have been permitted to give 1.5 lakh tonne by March 31, 2014 and the balance one lakh tonne by
September end. The rice mill owners wanted the government to relook at the restrictions that millers cannot stock
more than 5,000 tonne of paddy beyond 30 days. This had been now increased to 60 days with an assurance to
increase it to 90 days in future. However, there is no change in the government's minimum support price of Rs 2,400
per quintal for buying the levy rice.
Nagpur Foodgrain Prices Open-Dec 18
Wed Dec 18, 2013 3:02pm IST
Nagpur, Dec 18 (Reuters) - Gram prices in Nagpur Agriculture Produce and Marketing Committee
(APMC) showed weak tendency on lack of demand from local traders amid poor quality arrival. Easy
condition on NCDEX and fresh fall in Madhya Pradesh gram prices also affected sentiment,
according to sources.
*
*
*
*
FOODGRAINS & PULSES
GRAM
* Gram varieties ruled steady in open market on subdued demand from local traders.
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9. TUAR
* Tuar gavarani recovered in open market on good demand from local traders amid weak
supply from producing belts.
* Batri dal and Udid dal black moved down in open market in absence of buyers amid
increased supply from producing regions.
* In Akola, Tuar - 4,300-4,450, Tuar dal - 6,700-6,700, Udid at 4,800-5,100,
Udid Mogar (clean) - 5,700-6,000, Moong - 7,000-7,300, Moong Mogar
(clean) 7,900-8,100, Gram - 2,800-3,000, Gram Super best bold - 4,000-4,200
for 100 kg.
* Major wheat varieties reported higher in open market on renewed demand from local
traders amid tight supply from producing regions like Punjab and Haryana.
* Rice and other commodities remained steady in open market in thin trading
activity, according to sources.
Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg
FOODGRAINS
Available prices Previous close
Gram Auction
2,550-2,690
2,550-2,720
Gram Pink Auction
n.a.
2,100-2,600
Tuar Auction
n.a.
3,800-4,050
Moong Auction
n.a.
4,400-4,600
Udid Auction
n.a.
4,300-4,500
Masoor Auction
n.a.
2,600-2,800
Gram Super Best Bold
4,000-4,400
4,000-4,400
Gram Super Best
n.a.
Gram Medium Best
3,700-3,900
3,700-3,900
Gram Dal Medium
n.a.
n.a.
Gram Mill Quality
3,250-3,350
3,250-3,350
Desi gram Raw
2,900-3,000
2,900-3,000
Gram Filter Yellow
n.a.
n.a.
Gram Kabuli
7,700-10,000
7,700-10,000
Gram Pink
7,700-8,100
7,700-8,100
Tuar Fataka Best
6,700-6,900
6,700-6,900
Tuar Fataka Medium
6,200-6,400
6,200-6,400
Tuar Dal Best Phod
6,000-6,200
6,000-6,200
Tuar Dal Medium phod
5,600-5,800
5,600-5,800
Tuar Gavarani
4,150-4,300
4,100-4,250
Tuar Karnataka
4,400-4,500
4,400-4,500
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10. Tuar Black
7,000-7,100
7,000-7,100
Masoor dal best
5,400-5,500
5,400-5,500
Masoor dal medium
5,100-5,200
5,100-5,200
Masoor
n.a.
n.a.
Moong Mogar bold
8,400-8,600
8,400-8,600
Moong Mogar Medium best
7,800-8,000
7,800-8,000
Moong dal super best
7,200-7,600
7,200-7,600
Moong dal Chilka
6,800-7,000
6,700-6,900
Moong Mill quality
n.a.
n.a.
Moong Chamki best
6,000-6,800
6,000-6,800
Udid Mogar Super best (100 INR/KG) 6,500-6,800
6,500-6,800
Udid Mogar Medium (100 INR/KG) 5,800-6,000
5,800-6,000
Udid Dal Black (100 INR/KG)
4,600-4,800
4,800-5,000
Batri dal (100 INR/KG)
3,800-4,000
3,800-4,200
Lakhodi dal (100 INR/kg)
3,000-3,100
3,000-3,100
Watana Dal (100 INR/KG)
3,200-3,300
3,200-3,300
Watana White (100 INR/KG)
3,100-3,200
3,100-3,200
Watana Green Best (100 INR/KG) 4,500-4,850
4,500-4,850
Wheat 308 (100 INR/KG)
1,750-1,850
1,700-1,800
Wheat Mill quality(100 INR/KG) 1,700-1,750
1,700-1,750
Wheat Filter (100 INR/KG)
1,700-1,900
1,700-1,900
Wheat Lokwan best (100 INR/KG) 2,000-2,500
2,000-2,450
Wheat Lokwan medium (100 INR/KG) 1,950-2,100
1,950-2,050
Lokwan Hath Binar (100 INR/KG) n.a.
n.a.
MP Sharbati Best (100 INR/KG) 3,200-3,600
3,100-3,600
MP Sharbati Medium (100 INR/KG) 2,700-2,900
2,600-2,900
Wheat 147 (100 INR/KG)
1,550-1,650
1,500-1,600
Wheat Best (100 INR/KG)
1,600-1,700
1,600-1,700
Rice BPT (100 INR/KG)
3,200-3,400
3,200-3,400
Rice Parmal (100 INR/KG)
1,850-1,900
1,850-1,900
Rice Swarna Best (100 INR/KG) 2,400-2,600
2,400-2,600
Rice Swarna Medium (100 INR/KG) 2,200-2,400
2,200-2,400
Rice HMT (100 INR/KG)
4,300-4,500
4,300-4,500
Rice HMT Shriram (100 INR/KG) 4,800-5,200
4,800-5,200
Rice Basmati best (100 INR/KG) 11,000-13,500
11,000-13,500
Rice Basmati Medium (100 INR/KG) 6,300-7,600
6,300-7,600
Rice Chinnor (100 INR/KG)
5,500-5,800
5,500-5,800
Rice Chinnor Medium (100 INR/KG) 5,100-5,300
5,100-5,300
Jowar Gavarani (100 INR/KG)
1,450-1,600
1,450-1,600
Jowar CH-5 (100 INR/KG)
1,750-1,850
1,750-1,850
WEATHER (NAGPUR)
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11. Maximum temp. 29.3 degree Celsius (84.5 degree Fahrenheit), minimum temp.
10.0 degree Celsius (50.0 degree Fahrenheit)
Humidity: Highest - n.a., lowest - n.a.
Rainfall : nil
FORECAST: Mainly clear sky. Maximum and Minimum temperature likely to be around 30 and 10 degree
Celsius respectively.
Note: n.a.--not available
(For oils, transport costs are excluded from plant delivery prices, but included in market prices.)
Kittiratt offers apology, says rice farmer payments coming soon
Published: 18 Dec 2013,Newspaper section: Business
Caretaker Finance Minister Kittiratt Na-Ranong says rice farmers will be paid for their pledged paddy within
seven days, blaming the late payments on the ongoing anti-government protests.
"The occupation of the Finance Ministry, the Budget Bureau and the Comptroller-General's Department by
demonstrators for three weeks has delayed budget disbursement including payments to farmers in the rice
pledging scheme," said Mr Kittiratt, also a caretaker deputy prime minister.
He defended the Bank for Agriculture and Agricultural Cooperatives (BAAC) over its lack of liquidity, saying
the Budget Bureau and the Public Debt Management Office (PDMO) failed during the period to transfer money
to the bank.
He said the situation is now back to normal, allowing the bank to pay the farmers within a week.
"I would like to apologise to the farmers for the tardiness," Mr Kittiratt said yesterday.
Most farmers who pledged rice under the main crop are now crying foul over late payments. The BAAC has
refused to use its own liquidity to advance money to farmers without the National Rice Policy Committee's
approval to widen the 500-billion-baht limit on outstanding spending.
While the government wanted to lower the outstanding spending incurred from the previous two harvest years
to 500 billion baht at most, pledging for the current harvest estimated at 270 billion baht will cause combined
spending to exceed the limit.The state-owned BAAC has requested approval to waive the restriction.Faster rice
sales by the Commerce Ministry and new loans to the BAAC are two ways to speed up payments. But the
situation is muddled by Prime Minister Yingluck Shinawatra's call for an early election, as regulations bar the
caretaker government from using state financial resources before the election.
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12. The PDMO recently provided a credit guarantee to the BAAC's 75 billion baht in bonds to fund the rice
pledging scheme, but only 37 billion baht has been subscribed as investors fret over the political unrest.Rice
pledging, a key populist policy of the Pheu Thai Party, has drawn sharp criticism over hefty losses and pledging
prices 40-50% higher than market prices.Mr Kittiratt said the House dissolution means the government can buy
paddy from farmers only in the main crop with spending of about 140 billion baht funded mainly by the
BAAC's loans.Since the main crop began in October, some 5.5 million tonnes of paddy worth 90 billion baht
has been pledged under the government's rice scheme. The main crop runs through the end of February.The
BAAC has already paid more than 17 billion baht to farmers. Last week the bank said it had a mere 22 billion
baht on hand until the end of 2013 to pay farmers who pledged rice for the current main crop.
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