Govt stands to lose Bt10 bn from rice bids

The government had purchased the white and jasmine rice at Bt12,000 and Bt18,000 per tonne, respectively, to shore up domestic prices.

The winning bids were about Bt12,000 and Bt16,000, against market prices of Bt18,000 and Bt25,000.

The source said the offers were not as high as expected.

Due to the low quotes, Com-merce Minister Chaiya Sasomsap decided to cancel an auction for 1 million tonnes of rice from government inventory.

Siam Indiga scored the biggest combined lot of 570,000 tonnes.

Commerce Ministry spokesman Krisda Piampongsant said Chaiya had already given his approval to the sale of a total of 1.59 million tonnes of rice to the winning bidders.

The ministry is aiming to release 2 million more tonnes from its stockpile, of which jasmine and Pathum Thani fragrant rice account for 514,392 tonnes worth Bt7.99 billion. The remainder consists of 5-, 10-, 15- and 25-per-cent white rice.

Among the successful bidders were top rice exporters, including CP Intertrade (355,000 tonnes), Siam Indiga (89,000 tonnes), Namseang Rice Trading (4,000 tonnes), Chokvoraluk Rice Mill for (4,900 tonnes), Pichit II Rice (20,000 tonnes) and others (28,000 tonnes).

They can sell their rice in both the domestic and export markets, Krisda said.

In addition, 12 firms won export-only bids for rice in government inventories, including Siam Indiga (486,000 tonnes), Ponglarp (119,000 tonnes), Chaiyaporn Rice (194,000 tonnes), Asia Golden Rice (124,000 tonnes) and Capital Rice (95,000 tonnes).

Meanwhile, Thailand has applied to register geographical indication for "Thung Kula Rong Hai Hom Mali Rice" in the European Union.

Puangrat Asavapisit, director-general of the Intellectual Property Rights Department, said the designation would ensure protection of Thai rice among the EU's 27 members.

Some exporting countries have confused international consumers by imitating Thai rice, causing damage to the country's reputation.