The 200,826 tonnes are from the 2004/2005 harvest.

The tender aims to boost exports as jasmine rice is now in great demand around the world, Rachane Potjanasuntorn, director-general of the Foreign Trade Department, said yesterday.

The government now has more than 900,000 tonnes of jasmine rice stored in its warehouses.

However, about 500,000 tonnes are unavailable because they are undergoing inspection by the Public Warehouse Organisation for low-grade rice mixed in with the jasmine rice.

"We cannot indicate when that rice will be ready for release to the market," he said.

The department will be responsible for the auction on Monday, when interested bidders can submit offers from 10am to noon. The winners will be declared at 2pm.

The bidding price has to be quoted as freight on board, and the department will give discounted transportation to the winning bidder.

Jasmine rice from the 2005/2006 harvest is being quoted at US$440 (Bt17,600) per tonne, while 2004/2005 rice is going for $464.

Charoen Laothamatas, secretary-general of the Thai Rice Exporters' Association, said the government's release of rice onto the market would lower the world price, which was very high now.

The government should release small quantities of rice at a time in order to avoid large exporters cornering the rice market, Charoen said.

According to a ministry report, from January to March 13 this year, Thailand's rice exports grew 35 per cent to 473,775 tonnes (41 per cent by value).

Next month the Commerce Ministry will promote the export of the Trust Me brand of jasmine rice to China.

The brand was created by the ministry to guarantee the purity of Thai jasmine rice.

China, one of the Kingdom's largest jasmine-rice markets, will be the first to receive exports under the brand.

The ministry has signed a contract with a superstore chain owned by Taiwanese company Trust Mart, to distribute the product in China.

Trust Mart has 98 branches on the mainland, mostly in the southern part of the country.

The ministry will pack jasmine rice in small packages of two kilograms for sale at Bt40.

The government plans to export about 30,000 tonnes of jasmine rice under the brand each year, Rachane said, and the government's own brand name will guarantee consumers that their rice is free from admixture with low-quality grain.

Petchanet Pratruangkrai

The Nation