A total of 35 bidders - rice millers, packers and exporters - demanded less than the government's stock of 440,000 tonnes put up in this bidding. They wanted to purchase just 319,298 tonnes.

In addition, the prices bid were between Bt13,000 to Bt15,000 per tonne compared with the market price of Bt17,000.

The ministry, however, has delayed announcing a winner, and will wait for the conclusion of price bargaining in the next few days.

Thai-China Chonburi Rice Trading Co proposed the highest offered price of Bt16,800 per tonne, followed by CP Intertrade which quoted two prices of Bt14,800 and Bt15,5000 depending on the warehouse in which the rice was stored.

CP offered to buy the highest volume of 121,301 tonnes.

The ministry admitted the bidding price was fair for rice from the harvest season 2004/2005.

Karun Kittisataporn, permanent secretary of the ministry and head of the bidding, said the ministry would negotiate with some bidders to increase the price, but said the price was quite fair for the degraded quality.

"We have to try our best to gain the best price so we have to negotiate with some bidders. If we are satisfied with the price, we will sell the rice as bidders demand, although it is not the whole lot," he said.

Sumeth Laomoraphorn, president of CP Intertrade, said the price his offered was suitable for Grade B jasmine rice. The company cannot offer a higher price, as there is more costs involved for rice packaging and transportation.

If the company included the costs for packaging, the price would be Bt17,000-Bt18,000 per tonne, which is close to the market price, he said.

Also, he said if the company won the bidding, some of rice would be exported to Singapore, Malaysia and the Middle East while the remainder would be for domestic sale.

Exporters that have so far joined the bidding include CP Intertrade, Chia Meng, Asia Golden Rice and Huay Chuan Rice Trading. The rice packers are Sean Dee Rice and Pathum Rice Mill and Granary.

Petchanet Pratruangkrai

The Nation