Thailand Floods and The Global Markets

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Thailand floods shake the throne of global Rice

Thailand is the largest exporter of rice in the world since 1962, when applied Myanmar socialist system lost its dominance prior to the trade. The Thai rice exports reached a peak in 2008 when a shipment of 10 million tons versus 6.8 million in 2009. Vietnam exported and closest rival Thailand in the global rice trade is estimated at 9.6 million tonnes last year.The Thai government expects that it may eliminate the current floods on the 5 to 6 million tons of rice, estimated quantity production to five this year. Under the World Trade exceeded expectations for the rice crop of about 33 million tons in the current year, may deduct Thai floods 10% of this amount. If the same thing happened with the commodity of oil or wheat, the results will be disastrous for sure. But the nature of the rice market to make the consequences less serious, where the crop is characterized by great flexibility, which can cause flooding of significant damage to him as some predict.

Although rice is a main food for half of the world’s population, but the volume of world trade which is very small, compared with the harvest total expected of it in season 2010 – 2011, amounting to about 451 million tons, which is thrown only 7% of it in global markets, while the share of wheat is 20%. Means of international policies and directions of people food, rice is consumed most often in areas that are produced there. Rice is the major crops in Asia that rate of production and consumption by 90%, which seeks to achieve self-sufficiency of it. The markets are usually located under the weight of local and national systems of protection, where the item is considered one of the most goods subject to the policy. Moreover, different types of rice from long to short, thin, thick and adhesive, sticky, and others. Therefore, the consumer tends towards locally grown species do not prefer rice imported from distant farms.
Overall, this year is an excellent crop of rice so far. And the impact of the drought that hit Arkansas, the main area for rice production in America, largely on the crop, where the current year, exports fell by nearly 4 million tons to 3 million tons. But help to bumper crops in both Pakistan and India, make up the shortfall in exports of Thailand. Also successful and abundant crop in India to convince the officials who were afraid of food inflation, to reduce protectionist policies, where the government lift a ban was imposed on the white rice last September to allow the export of two million tons by the flooding of Thailand. The Indian traders to sell the entire amount authorized by the lowest possible prices, thus casting in the interest of African countries, which imports about 10 million tons per year, one third of total world trade.
Floods and production of personal computers

 

The floods in Thailand affect the industry of electronic components in the country to a slowdown in industry, and even to decline by 20% in supply, according to a disastrous scenario worn by some analysts, has been declining supplies of the hard disk most important component in personal computers (NBC) by 30% during the fourth quarter to 125 million units, which will be forced makers of computers to reduce their production according to company studies “IHS.” According to the company’s competition, “International Data Corporation” (IDC) that this may be reflected in AUSSOIS cases to a decline in the delivery of services of personal computers by 20% compared to the expectations of the first quarter of next year, factories have Thai-producing hard drives are generally in the industrial zones in the central plains that flooded since July, which provides 40% of the market needs.

At the time nearing the end of the rainy season in Thailand and the floodwaters began to recede producers are expected to be able to resume shipments of their activities by the end of the year and expects “IDC” the return of production and prices to normal levels in June 2012.

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One Response to “Thailand Floods and The Global Markets”

  1. ngoziokei Says:

    When I saw the flooding in Thailand, it was a disastrous event, which l know it will shake the world. No wonder you can see the cost of rice has doubled. Rice being a commodity which is highly consumed, its not a good news to hear of its effect due to the flooding. This situation should be attented to and addressed before any future disaster reoccurs its ugly head again to affect the commons value and commons pool resources, which will definitely affects its sustainability production/process. Its going to cost the government of Thailand alot of capital to recover a lot of their resources. All goverment should act fast on this issue of global warming and climate change/carbon emissions regulations.
    http://www.farangtalk.com/forum/showthread
    http://www.ukfloodbarriers.co.uk/Default.aspx

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