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Published on October 27, 2007

Foreign Trade Department director-general Apiradi Tantraporn yesterday said the National Rice Policy Committee had approved an auction for 913,346 tonnes. Bidding will be held on Monday.

The auction will focus on jasmine rice and 5- and 25-per-cent white rice. It will not affect the local market, which currently has high demand, and will reduce the government's stock of 2 million tonnes.

"The auction will not affect local and export rice prices, because the market has high demand, while rice that is selling in the market now has a high moisture content," said deputy-director general Vichak Visetnoi.

He added that rice exporters and local traders would improve quality by mixing their high-moisture rice with high-quality rice from the government's stockpile. This would also bring them higher prices.

Following the suspension of Vietnam's rice exports, Thailand's prices are rising. For instance, Pathum Thani fragrant rice has risen Bt40 to Bt50 per 100-kilogram sack. Moreover, the average export price for white rice has increased to $372 (Bt12,700) per tonne now, from $336 at the same time last year, an increase of 10.71 per cent.

Rice Exporters' Association president Chookiat Ophaswongse said the auction would come at the right time, because the market had high demand. It is expected that no rice will enter the market until December.

Rice prices are increasing, he said. For example, 100-per-cent white rice has risen from $320 a tonne to $345, while jasmine rice has increased from $550 a tonne to $580.

"The auction will not affect the market. On the other hand, it will balance supply and demand. If the government does not release its stockpile, the amount of domestic rice will increase and affect exports," he said.

The Nation