CIMA for the Export of
Rice from Thailand
Thawatchai Dechachete
28 October 2009
Outlines
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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
• 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
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
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
Rice Pledging Scheme”,
Paddy rice 5% broken pledging scheme
Year
2006
2007
2008
Annual Average Price
Pledging Scheme Price
Unit: Baht/Tonne
(USD/Tonne)
Price Differece
5,771.8
(173.0)
6,405.7
(192.0)
6,188.8
(185.5)
6,228.9
(186.7)
-417.0
(-12.5)
176.8
(5.3)
9,942.2
(298.0)
6,665.9
(199.8)
3,276.2
(98.2)
Major Trade Barriers for Thai Rice
• High import tariff
• Monopoly importer
• Subsidy in developed countries
High import tariff
Tariff rates for rice imports by trading countries
Country
China
EU
Japan
US
Source: WTO Secretariat
Tariff rate
65%
416 EUR/tonne
341 Yen/kg
11.20%
Monopoly importer
• Quantitative Restriction
• Rice Import Specification Restriction
• Rice Import Auction
Price ladder of Thai Jasmine rice exports to the US
Descriptions
2006
2007
2008
Exporter price (PRX)
878
1,002
1,370
Duty – paid price
675
771
1,054
C.I.F. price
607
693
948
F.O.B. price
480
562
910
Processed good price
427
527
780
Producer level price
323
392
574
0
0
0
323
392
574
Exporter government taxes less subsidies
(Tax)
Cost of production (COP)
Price ladder of white rice 25% exports to the Philippines
Descriptions
2006
2007
2008
Exporter price (PRX)
599
Duty – paid price
461
557
C.I.F. price
307
371
865
F.O.B. price
270
305
609
Processed good price
263
291
539
Producer level price
231
332
505
0
0
231
332
Exporter government taxes less subsidies
(Tax)
Cost of production (COP)
724
1,686
1,297
505
Price ladder of parboiled rice
exports to South Africa
Descriptions
2006
2007
2008
Consumer price
503
571
1,098
Exporter price (PRX)
441
501
963
Duty – paid price
339
385
741
C.I.F. price
339
355
741
F.O.B. price
310
340
733
Processed good price
281
308
663
Producer level price
231
332
505
0
0
0
231
332
505
Exporter government taxes less subsidies
(Tax)
Cost of production (COP)
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
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
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
CIMA
• BMAP = BMA/PRX * 100
• CIMA = 1 – BMAP
Summary of the BMAP and CIMA
Decriptions
Country – Rice Type
The US – Thai Jasmine
rice
The Philippines – White
rice 25%
South Africa – Parboiled
rice
BMAP
CIMA
2006 2007 2008 2006 2007
7.86
7.81 92.14 92.12
92.19
25.71 25.69 25.62 74.29 74.31
74.38
0.2
7.88
2008
0.18
0
99.8 99.82
100
Difficulties
• Estimation of processor and exporter cost
• Estimation of meeting standard for export
and cost of meeting health and safety
standards.
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
Thank you very much
Thawatchai Dechachete
E-mail: dechachete@yahoo.com