Rice bidding may be scrapped
The Commerce Ministry is considering cancelling the latest round of bidding for 400,000 tonnes of the government's rice stockpile, which opened yesterday.
This follows offers of lower-than-expected prices, particularly for jasmine rice. Foreign Trade Department deputy director-general Vichak Visetnoi said yesterday the department would contact the bidders and bargain for increased prices. If this fails to achieve satisfactory prices, the ministry might scrap the jasmine-rice bidding.
“Bidders offered rather low prices, which were caused by the ministry changing some bidding regulations, such as eliminating compensation for expenses,” he said.
Only a small number of rice traders and exporters took part in yesterday’s bidding. Half of the 400,000 tonnes on offer was B-grade jasmine rice, and the rest was 5-per-cent white rice.
Only four bidders were interested in the 5-per-cent white rice, with a total demand for 101,000 tonnes.
Chaiyaporn Rice offered the highest price of US$285 to $290.13 (Bt10,400 to Bt10,500) per tonne for a total volume of 80,306 tonnes, followed by Ponglarp, bidding for 10,120 tonnes at a price of $279.10 a tonne. The current market price for 5-per-cent white rice is $441.25 a tonne.
There were only two bidders for jasmine rice without a DNA inspection, with a total demand for 4,403 tonnes. Surin Thip Rice Mill offered the highest price, Bt14,000 to Bt15,000 per tonne for 2,676 tonnes.
Four bidders sought jasmine rice that had passed a DNA inspection. CP Intertrade offered the highest price of Bt12,500 to Bt14,100 per tonne for a total of 68,092 tonnes.
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