COMMODITY TRADING

Commodity Trading of Rice



Introduction

The demand of the country can be affected to a lesser or greater extent by macro forces, that include political forces, economic, technological, environmental, gastronomic and social, whenever the countries occasionally try to influence legislation or through R & D pioneering new technology or changes to strengthen its position or to discover new opportunities. Macro forces generally are not under the direct control of companies, therefore, the purpose of the strategic direction is to enable the demand of the product to act effectively to threats and environmental constraints and opportunities emanating from the same. To meet this objective, leaders must identify and analyze how expression of these macro forces in relation to the country. This paper presents the agricultural financial and political discussions with respect to rice. The paper chooses Thailand as a focus of the trade and commodity implications of this agricultural commodity.

Discussion

Thai rice is the focused area which further shows differences with China and Taiwan which are the also the major exporters of rice along with Thailand. In analyzing the food industry especially the rice segment, it is significant that Thailand should consider all the important factors which include economic, political, social, environmental, technology and gastronomic that can affect the exports of the country.

Political

A part will not be adept to gain achievement, good status and believe if it will not address lawful and administrative part as part of its strategy. For Thailand, political and lawful parts encompass the desires of the part to pursue the granted principles and guidelines of the government in alignment to be advised as lawful and authorized enterprise sector. In this kind, for instance, Rice sector of Thailand should adept to address political and legal facets so as to display that they worth the principles and guidelines of the government in any of the enterprise operations. This includes levy policy, paid work laws, governmental stability, ecological regulations, and trade and tariff restrictions. (Sombilla, Mahabub and Hardy, 2002)

The price of Thai rice could rise as high as US $600 a ton on the world market by the end of this year, according to Manas Soiploy who is the director general of the Foreign Trade Department. “The FOB export price of Thai rice is now around US $ 533 a ton, but it could increase to US $ 600 on the back of strong global demand for rice.” Major Rice importers, such as Indonesia and Bangladesh, have an increasing demand for the grain.

In addition, the Philippine is planning calls bids for at least 1.5 million tons of rice in the second and third quarters of the year. At the same time crops in China and Taiwan, the leading rice producers, are affected by drought and exports have been hit. (Naylor, 1996)

Economic

It is significant that an inevitable part should furthermore give sufficient vigilance to its financial stability to Rice exporter of Thailand. The economic aim of certain commerce is like an axis in which other objectives or goals are ...