Lab tests show Thai rice clear of chemical residues, toxins

The Commerce Ministry reports that the latest tests on 220 rice samples from various provinces found no hazardous residues or chemical toxins.
Deputy Commerce Minister Yanyong Phuangrach said lab tests, conducted on packaged rice samples, found no phosphine, fungus or alpha toxin.
The volume of inorganic bromide residues, found in 130 samples, did not exceed the safety standard level of 50 milligrammes/kg, he said.
The rice samples were collected from Nonthaburi, Pathum Thani, Samut Prakarn and Chachoengsao provinces from July 24.
Yanyong said quality tests would continue in other provinces to ensure safety for consumers and test results would be sent to foreign importers to gain their trust and confidence in Thai rice.
Regarding the return of 3.2 tonnes of Thai rice from the US, the deputy minister said the lot was exported by Nakhon Luang Rice Trading to Best Food Service Incorporation in the US on October 25 last year and it was approved by the US Food and Drug Administration.
The US importer complained about the odor of the rice.
The Thai Food and Drug Administration immediately checked the lot on its return and confirmed that the rice was free from chemical residues, he said.
The Thai seller and US buyer mutually agreed on the return of the rice and no penalty was levied against the Thai exporter, he said. (MCOT)

Central bank reports economic slowdown in July

Thailand’s economy continued to decline in July in every sector linked with a 0.7 percent decrease in private consumption, said an official of the Bank of Thailand (BoT).
Mathee Supapongse, senior director of BoT’s Macroeconomic and Monetary Policy Department, said purchases of automobiles and durable products as well as private investment have declined.
July’s exports shrank by 1.3 percent year-on-year to US$18.804 billion, he said.
“It could not be indicated if the Thai economy has reached its bottom but there was a positive sign that the economy in Q3 would be better than Q2. We need to wait for the August performance,” said Mathee.
The current account deficit in July was US$709 million, an increase from US$664 million in the preceding month, due to gold imports, he said, adding that, excluding gold imports, the country enjoyed a current account surplus of US$255 million.
He was optimistic that Thailand would not encounter a serious current account deficit problem such as has happened to India.
Price rises in liquefied petroleum gas and expressway fees, starting Sunday, would have a slight impact on Thailand’s inflation which should be in the predicted framework of 0.5 percent. (MCOT)

UNCTAD chief not worried by potential US stimulus curb

The Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) said he viewed the expected reduction in stimulus measures by the US Federal Reserve (FED) will only affect financial and capital markets in the short-run.
Dr Supachai Panitchpakdi on Thursday spoke at ‘Thailand Focus 2013’, a two-day international road show in Bangkok.
He said Asia has been relying on liquidity injected by the US Federal Reserve’s Quantitative Easing measures which saw a large amount of capital flowing into the region, raising concern about a bubble in the bond and stock markets.
The UNCTAD chief said he viewed it as positive for Asia that the US will reduce its QE measures for capital inflows, reversing the flow, which will enable Asia, including Thailand, to see the real economic fundamentals. The Thai economy may shrink but will become stronger in the long run.
Dr Supachai suggested that the government invest in projects to encourage more efficient production, being an example for the private sector to follow suit, allowing the Thai economy to sustainably expand and it will not negatively affect public debt.
The UNCTAD Secretary-General also advised Thailand not to depend heavily on its exports to China, for the country’s economy is trying to balance itself. (MCOT)

Finance Ministry forecasts higher economic growth in Q3

The Thai economy in July showed signs of slight improvement compared to the previous month, despite an overall slowdown and falling exports, according to a senior Finance Ministry official.
Ekniti Nitithanprapas, deputy director general of the Fiscal Policy Office, said July exports rose by 1.5 percent year-on-year but increased by 0.8 percent month-on-month compared to June due to expansion in the electronics and fuel sectors in tandem with the strengthened US and European economies.
Regarding consumption in the private sector, he said revenue from value added tax (VAT) in July declined by 1.9 percent year-on-year but VAT collections based on domestic consumption increased by 5.5 percent year-on-year.
Commodity imports in July were higher by 9.0 percent year-on-year while private investment in construction, based on property business, increased by 29.9 percent year-on-year in July.
Private investment in machinery, based on imports of capital goods in July, dropped by 3.6 percent year-on-year but expanded by 8.7 percent compared to the preceding month.
Kulaya Tantitemit, executive director of the Macroeconomic Policy Bureau, said the economic indicators on Thailand’s supply in the industrial and agricultural sectors has slowed down but the tourism sector has expanded.
The manufacturing production index (MPI) in July dropped 4.5 percent year-on-year and 0.4 percent month-on-month compared to June, while raw material imports increased by 12.5 percent year-on-year, reflecting a positive sign in the industrial sector, she said.
Kulaya said the agricultural production index (API) in July shrank by 2.7 percent year-on-year and 7.4 percent month-on-month in accord with decreasing rice production partly due to drought.
On the brighter side, Thailand’s tourism expanded 22.5 percent year-on-year, mainly from visits by Chinese, Malaysian and Singaporean tourists.
Ekniti said there were signs that the Thai economy would become more lively in the third quarter. Thailand’s economic stability, both internal and external, remains solid given inflation and unemployment rates at 2.0 percent/year and 0.5 percent/year respectively.
The country’s foreign reserves are as high as US$172 billion - sufficient to cope with the global economic volatility - while the fiscal policy will be significant in stabilizing the economy in the second half of the year, he said. (MCOT)