Further 668,000 tonnes of stockpiled rice up for auction next week

Duangporn Rodphaya, director-general of the Foreign Trade Department, yesterday said the ministry would call for bids for part of the official rice stocks next week.

Bidding details will be announced tomorrow, while the inspection of bidders’ qualifications will be undertaken on August 10.

Qualified bidders will be announced the following day, which is when companies will have to submit their bids.

The ministry has sold 3.88 million tonnes of stockpiled rice in eight auctions so far this year, fetching Bt40.9 billion.

As of June 30, it still controlled 15.11 million tonnes, of which 9.15 million tonnes was high-quality rice ready for consumption and 5.89 million tonnes was to be sold to the manufacturing sector.

Another 1.29 million tonnes of the stockpile was rotten, while 70,000 tonnes was subject to legal cases.

An anonymous source from the sector said exporters had forced down the price of 5-per-cent broken Thai white rice – from the new production season – from Bt12,500 to Bt11,800 per tonne on July 29, prompting rice mills to slash paddy-rice prices from Bt8,800-Bt9,000 to Bt8,300-Bt8,500 per tonne.

Price cuts are expected to be reflected in the upcoming bidding round for rice from the state stocks, given that there are no changes in the price of exported rice, at US$380-$388 per tonne, said the source.

Based on a recent survey by the ministry’s Internal Trade Department, the wholesale price of 5-per-cent broken Thai white rice has been falling consistently in Bangkok, despite the drought in many rice-growing areas.

After peaking at Bt12.90-Bt13 per kilogram on July 15, the price fell to Bt12.50-B12.60 on July 29 – and has since dropped further to Bt12.40-Bt12.50.