• 
• 

Published on January 26, 2008

Thailand is the world's major rice-exporter.

This bidding will be the first of the year as the rice harvest is almost ended. The bidding will also help the government clear up its old stocks, leaving only 1.4 million tonnes in its stockpiles.

"The bidding will respond to rising global demand and lower supply by rice-exporters and should also relieve the skyrocketing rice price," Pisut Chalakornkul, president of the Public Warehouse Organisation said yesterday. "The price has surged significantly on high demand in the world market."

The price has surged since late last year on lower supply by rice-exporting rivals such as Vietnam and India.

The auction will include rice for both domestic and export supply.

Chookiat Ophaswongse, president of the Thai Rice Exporters' Association, applauded the decision to release the rice stocks now, noting that the government was the largest holder of rice stocks.

The bidding will suppress prices but should not hurt rice farmers as the price is expected to continue to rise, he said.

Jasmine rice is currently at US$720 (Bt23,800) a tonne, 100-per-cent-white rice at $405 a tonne and parboiled rice at $415-$420 a tonne.

Petchanet Pratruangkrai, The Nation