To bring down the huge rice stockpiles under the intervention scheme,

Duangporn Rodphaya, head of the foreign trade department at the ministry told Reuters the reason for selling the rice at prices lower than that of market as the rice is almost two years old but its not way below the market. The private firms have to spend additional cost for improving the quality of rice and it was sold at a price which they offered for their tenders.

The sales account for a fraction of the 18 million tonnes that Thailand had built up by this year. Of this about fifth part of the rice was founded either rotten or of d-grade quality.

Another official who declined to be named, said that prior to this sale, sale of 59,600 tonnes of rice has been held to four private companies which earn 570 million baht (US$22 million).This accounts to an average estimation of $295 per tones of rice. Prices of five per cent broken rice is currently offered on the market at around US$425 (S$541) free on board.

Former Prime minister of Thailand, Yingluck Shinawatra has offered prices to the farmers above the market prices.

Current government wants to sell the stockpiles as soon as possible to recover the financial losses but the authorities wanted it to be slowly and gradually so that prices are not much lower than the market prices should be offer.

Already two rice auctions has been held  to sell the rice under the rice pledging scheme and has sold around 70,000 tonnes of rice in each.

The announcement for the third auction would be held soon and also the talks with the China and Iran are ongoing.