Industry source says 10-year-old rice likely destined for Africa
The government appears to have secured buyers for the last 15,000-tonne stock of 10-year-old rice stored under the controversial rice-pledging programme, according to a source familiar with the matter.
The rice, stored at two private warehouses in Surin province, has been put up for auction by the Commerce Ministry’s Warehouse Organisation.
“The government is likely to have targeted certain exporters for this 10-year-old rice stock,” the source told Than Settakij, a sister publication of The Nation. “The [prospective] buyers probably have talked with the government about the prices. I believe the company has the potential to help the government. The stock is only 15,000 tonnes.”
This stock is the last of 18 million tonnes of milled rice stored at various warehouses under the Yingluck Shinawatra government’s controversial rice-pledging programme before it was overthrown in a military coup in May 2014. The post-coup government led by General Prayut Chan-o-cha auctioned off most of the 18 million tonnes – more than 80% of which was described as “low quality” at that time.
According to the source, the buyers of this rice stock have a good chance of exporting it to Africa, where demand for Thai rice is high.
“The timing is good now. Customers in Africa are waiting to buy rice,” the source said.
This prospect could drive up the prices of rice in this stock, as much as 8,000 baht per tonne higher than what the previous government obtained during its auctions, the source said.
“The previous government sold long-grain white rice with 5% broken grains at an average price of 11,000-13,000 baht per tonne. Now the market value of this type of rice is 21,000 baht per tonne. This stock of rice could fetch at least 18,000 baht per tonne,” the source said.
The source, from a rice-exporting company familiar with government rice auction, also said that the world market this year has seen high demand for milled rice after India decided to suspend exports of white rice to prevent domestic shortages.
Supachai Vorraapinyaporn, chairman of Thanasarn Rice Co Ltd, said Africa’s rice market has demand for up to a million tonnes each year.
“For the rice industry, 15,000 tonnes is not a big amount,” he said, adding that the quality of old rice can be improved for consumption.
