An intriguing explanation by the Ministry of Trade

During our stay in Thailand we repeatedly noted that Thai rice was sold at a  higher price in various grocery stores in Thailand than the Thai rice sold in 25 kg bags in Burkina Faso, Mali or Ghana. We continued to be puzzled by this. The Thai farmers we met could not give us an explanation.

However, the day before our departure, on December 4th, our group had an opportunity to meet an official in charge of foreign trade at the Ministry, a senior civil servant at the head of the division of rice exports. We came with hopes that this encounter would provide us with a satisfactory answer to our query.

Surprise! Instead of answering our question on cheap rice this senior official gave us a long explanation on the reasons why prime quality Thai rice commands a high price when imported (diminishing stocks, rising shipping costs) and said that costs were bound to go up further in the years to come.

We did not contest this. However, we insisted that although it was true that expensive Thai rice was sold at West African markets (about one Euro/kg in Ouagadougou, while domestic rice costs less that 50 Euro cents/kg, such imports did not harm African rice growers. The quantities imported are not very large and most consumers are not familiar with this foreign variety. Only a few wealthy families can afford to buy it. But time and time again we repeated that there is also Thai rice of lower quality (to say the least) which is being imported massively in West Africa. It is sold at 225 or 250 CFA francs. We asked him where such rice came from, how old it was and how it could be sold at a lower price than the equivalent we had seen in grocery stores in Bangkok.

He continuously refused to admit that such Thai rice could be present in Africa. He told us to

remember that Thai rice is the best in the world! Therefore, if we had come across poor quality rice in bags labeled with Thai origin, it must be some evil minded African traders, who did not hesitate to use the fine reputation of Thai rice to get rid of their old stocks. There was no way that such a product could have come from Thailand.

This explanation could not satisfy us. The dealings of a few unscrupulous traders could not be the single reason for the imports of millions of 25kg rice bags into Africa, labeled "Thai Rice"! Therefore we continued to harass him with our questions to try and find out more. In the end, without making any direct connection, he merely admitted:

* the existence of stocks of poor quality rice, not intended for human consumption, but to be used as animal feed;

* the presence of some business companies of questionable trading practices.

We can therefore easily conclude: the Thai Government does not encourage exports of poor quality rice. It lets a few shady companies sell out poor quality stocks in Africa - those which Thai cattle will kindly let us have! We asked our Thai friends of the NGO "Local Action Links" to check this conclusion and we expect to have their reply shortly.

We may also add one more exchange from this encounter. One Ghanaian member of our group asked the same senior official  the following question: "Does it not bother you to know that rice from your country is about to ruin Ghana's economy and harm the development of the rice sector across all of West Africa?" This question seemed sheer folly to him! He first stated that he did not understand the question. The he added: "Are you asking me, at the head of the division of rice exports of my country, to come to Ghana and do the work your political leaders are not willing to do? That is madness!"

In fact, we could ask the same question: "When will our political leaders take on their responsibilities? When will they start protecting their people from the harsh impact of massive imports of low quality food products?"

Koudougou, 11 January 2008
Maurice Oudet
Director, SEDELAN