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Published on August 25, 2007

The company - formerly Thailand's largest rice exporter - will also be subject to a daily fine of Bt24 million for failure to meet its commitments concerning the ministry's 20 bidding contracts for the 2004-2006 harvests. The combined volume involved is one million tonnes.

President Agri Trading officially announced the shutdown of its Bt650-million integrated rice-silo operation in Phichit on Thursday, due to accumulated debts of billions of baht.

Under the contracts, the fine is 25 per cent of the total value of the rice involved. The firm has failed to follow through on deals since March this year, with the last contract becoming invalid on August 17.

President Agri Trading will be subjected to a fine once the ministry can finalise the total losses incurred, estimated in the billions of baht.

Karun Kittisataporn, permanent secretary of the ministry, said yesterday that the company would now have no right to participate in future bidding due to its previous failure to perform.

 "Although the government does not have a regulation to blacklist any rice trader, the ministry will not allow President Agri Trading to participate in any contracts due to its failure to meet its obligations," he said.

The ministry will soon consider reopening rice-bidding lots in order to release the company's stock of white rice.

Pisut Chalakornkul, president of the Public Warehouse Organisation (PWO), which is responsible for the official rice stockpile, said the government would be able to calculate the exact fine against the firm after the rice covered by the 20 contracts is sold.

To protect the rice stockpiles from pilfering, the PWO has asked the Army to post 24-hour guards on its warehouses, Pisut said.

Petchanet Pratruangkrai

The Nation