The first thai rice auction of 167,000 tons under NCPO was held in Bangkok Out of the total thai rice stockpiles approx 43% making a total of 73,000 tons of thai rice has been selected for sale by Thailand’s Commerce Ministry for about 737 million baht.
Mrs Duangporn Rodpaya, director-general of Foreign Trade Department(DG-DFT) has announced that the rice will be sold to 12 bidders out of 46 bidders but the price per Kg are not announced as it may affect the future rice sales.
As many of the bidders proposed prices below the reference prices set by the panel handling rice sales, so it was a challenging situation that whether the department will continue to sell the rice as bidders were offering lower prices and in that case the auction may be called off and a new auction will be staged until the Foreign Trade Department will get the satisfied price said Ms Rodpaya.
DG-DFT said that they are proposing the NCPO to either lower floor price range or introduce a price range to avoid low bids.
It is expected that the Thailand warehouses have 18 million ton of rice stockpiles and they will sell in a lot of 500,000-600,000 tons per month completely the stock in coming three years.
According to the Thai Rice Exporter Association ,Thailand ice export is up by 34% this year from about 6.7 million ton to 9 million ton.
The NCPO Chief has urged farmers to shift to crops other than vegetable and fruits because the rain condition in the country is not good and the government is not in a position to provide subsidy to all the crops.
Last month the government has given the subsidy on a rice production rate and halted the rice pledging scheme.
Also interim government will be formed in the September 2014 and the fiscal budget for 2015 will be announced by early October.