The Government has yesterday supported the sale of about half of almost 1 million tones of rice through the year’s first rice auction.
Thai government has planned to sell 1 million tons of rice through auction on Jan 29, 2015. Of the 1 million tons, 850,000 tonnes of rice is 5% broken and remaining 150,000 tons is jasmine rice.
Commerce Minister Chatchai Sarikulya said that the government has decided to sell almost half million tones of rice to 38 winning bidders of this year’s first thai rice auction.The quantity of rice is 496,243 tonnes which is worth of 7.85 billion baht.
Last month, Duangporn Rodphaya, director-general of the Foreign Trade Department, said that the commerce ministry was very confident to release around 999,763 tonnes of rice to which many traders showed the result reflecting the high demand in the market.
The prices for the same were announced in advance. The auction included the sale of white thai rice and Thai hommali. The prices for white rice were set at 8-10 baht per kilogram and Thai hommali was set at 25 baht per kilogram.
The rice put up for auction included 850,000 tonnes of 5% white rice and about 150,000 tonnes of Hom Mali. Authorities estimated the total cost for the sale at 11.7billion baht.The auction drew a great interest
Gen Chatchai said that one bidder whose qualifications were disqualified if the authorities agreed to include his proposal than an additional amount of 400 million tones could also be sold by the thai government.
Charoen Laothammatas, president of the Thai Rice Exporters Association, said the year’s first auction by the government was considered a success, indicating market demand for rice continues to remain strong.
“Despite the amount of rice stocks put up for sale being relatively huge in the first auction, the government’s ability to sell almost half the total was more than satisfactory,” he said.
“This shows demand for rice is strong at both the local market and for export. This is a perfect period now for the government to increase its rice stock disposal.”