All traders offered the market price minus 35 satang to Bt145 a kilogram. The current market price is Bt1,015 to Bt1,020 a kilogram for 5-per-cent white rice. Trading on the exchange is for prices three months out.

The Commerce Ministry offered 33,098 tonnes of white rice from the 2005-06 harvest.

Deputy Commerce Minister Oranuj Osathananda said the bidding on the exchange would not only pave the way for the market to get a better handle on the future price of rice, but also increase the transparency of rice trading from the government's stockpile.

"The ministry was quite satisfied with the prices offered, although it was a little bit lower than the current market price," she said.

The ministry will conduct further bidding for white rice on the Afet, in order to serve market demand and clear out its inventory of 3.3 million tonnes of rice of all grades.

The ministry intends to put up 150,000 more tonnes of white rice for bidding on the Afet, which should be completed by August.

Permanent secretary Karun Kittisataporn said the trading of rice in the futures market would help the ministry project the trend of rice three months ahead.

CP Intertrade, one of the country's leading rice traders and exporters, won the biggest lot of 10,755 tonnes by quoting the smallest discount: 35-65 satang a kilogram.

A source from one of the bidders cautioned that trading rice in the futures market might not be very successful, because the winner must wait three months to take delivery of the commodity to sell in the market.

Petchanet Pratruangkrai

The Nation