Special committee to investigate rice bidding

Amid fears of favouritism regarding the most recent rice-bidding approval, the Commerce Ministry has set up a special committee to investigate whether it was fair to all involved.

The move is aimed at ensuring transparency. It comes after much doubt arose over former commerce minister Chaiya Sasomsap's approval of the release of a huge lot from ministry warehouses as his last act in office.

Deputy permanent secretary Srirat Rastapana yesterday said the special committee would be responsible for investigating whether the bidding was transparent.

"The ministry does not believe approving the bidding was wrong but would like to show that the approved prices for all of the winners and the approval period are above board," she said.

Sixteen rice exporters and millers have enjoyed a windfall from the ministry's extra tender of more than a million tonnes of the grain from government stocks.

It was found that the selling prices the ministry approved for 914,850 tonnes of white rice and 191,977 tonnes of fragrant Pathum Thani rice at auction were much below market prices.

The winning bid for the former was between Bt14,000 and Bt16,550 a tonne, while the export-market price for 5-per-cent second-crop white rice is quoted at US$569 (Bt19,900) per tonne. For the fragrant rice, the winning bid was between Bt15,000 and Bt18,000 a tonne, while the market price was quoted at $714 to $816 a tonne, equal to Bt25,000 to Bt28,600.