Eighteen rice traders joined the Thai government's auction for 420,000 tonnes of rice late yesterday, reflecting high market demand.
Surasak Riangkrul, director-general of the Commerce Ministry’s Foreign Trade Department, said that at the end of the main-crop harvest season, traders seemed to have more demand for rice. The auction should be able to release rice at a good price.
The bids are open for 420,000 tonnes of main-crop white rice harvested in 2013-14, and 13,000 tonnes of damaged rice.
After this process, the Commerce Ministry will bargain for the best price with all bidders today. If price and volume needs are met, the deals will be proposed to caretaker Commerce Minister Niwatthumrong Boongsongpaisan for approval.
Surasak expects that the ministry should be able to sell half of the rice in this round for no less than the market price.
According to a report by the Thai Rice Exporters Association, as of Wednesday, the price of 5-per-cent Thai white rice was quoted at US$403 a tonne.
The ministry last month opened bidding for about 400,000 tonnes of rice, which 34 traders joined. But the ministry has not agreed to sell the rice as the bids were far below the market price.