Thai Government has decided to dispose off  its rice stock under rice pledging scheme within coming two years. Of total 17 million tons of rice , the government has decided to dispose 10 million in this year only.

Commerce permanent secretary Chutima Bunyapraphasara, head subcommittee handling state rice sales said that government will focus on selling the rice of all varieties i.e. from premium to low quality.

Auditing Panel has now wind up with audition of rice warehouses and has categorized rice into different categories according to their quality as Grade A, B, C rice so it would be now easy for the sales department to handle the sales.

However Ms Chutima said that the sale would be carry over in such a way that it will not affect the rice prices of new rice supplies.

Last month in a meeting with National Rice Policy Committee, Prime Minister Prayut Chan-o-cha  told about the criteria followed by Auction panel to categorize the rice stored in the state stockpiles.

Of 17 million tones of rice, 2.35 million tones were of standard quality and considered Grade A rice. 13 million of rice was categorized as Grade B as the grains did not passed the quality test but quality could be improved for sale.About 700,000 tonnes of rice had gone bad, while another 67,000 tonnes did not match with types detailed on registration records, so they were classified as Grade C.

After all the stock will be sold off, the estimated loss from previous rice pledging scheme would be of about 680 billion baht.Ms Chutima said that the panel will release two-three auctions for rice sale by the march as during this period no new supply would come in the market.

2015’s first bid of about 1 million tones is scheduled for next Tuesday she said, which is open for both large and retail buyers. Before the National Council for Peace and Order took over the control, the Commerce Ministry had called 4 general auctions selling 681,740 tonnes rice worth 6.36 billion baht.

Thailand is expected to deliver 900,000 to 1 million tonnes of rice last year through government-to-government (G-to-G) contracts, mainly to China, Indonesia and the Philippines., according to The Foreign Trade Department

As part of the government’s G-to-G efforts, Thailand signed a memorandum of understanding with China last month to sell 2 million tonnes of Thai rice, but the government did not reveal the time frame for the purchase, saying only that it would take some time.

The new rice deal with China has nothing to do with an earlier deal for 1 million tonnes agreed under the previous government. Thailand has delivered 300,000 tonnes to China as part of the earlier deal, with 700,000 tonnes yet to follow.