In a meeting of The National Rice Committee Policy, which was chaired by honorable Prime Minister Prayut Chan-o-cha a decision was taken to sell off 5.89 million tons of substandard and rotten rice from government’s stockpile by inviting bids from reputed bidders.
Government of Thailand holds a total of 15.46 million tons of rice in its stock which is divided into three categories.
Category 1: 9.7 million tons
Category 2: 4.6million tons
Category 3: 1.29 million tons
Rice under category 1 is further divided into two groups and is suitable for domestic consumption and for export. Rice under Category 2 is unsuitable for domestic use and will be sold to ethanol manufacturers through bids. Category 3 rice will be sold to biomass power plants and will be used as fuel for electricity generation.
The Government has decided to sell rice from Category 2 & 3 by the end of this month before the new crop enters the stockpiles.
The government is planning to speed up the sale of rice from these two categories to save the storage cost which cost upto 46 million baht (around $1.35 million) per day to government. Also there is a concern that it this rice last longs in the stockpile it will also contaminate the new stock and hence will damage the country’s reputation in international market.
The government is planning to raise around 200 million baht (around $6 billion) by selling the complete stock including rice from all the categories against 600 million baht (around $17.7 billion) spent on acquiring and storing it.