The government plans to dispose of 17 million tonnes of rice left in its stockpile within two years, with a major portion of about 10 million tonnes to be sold this year.
Several potential buyers including Hong Kong and Iraq are reportedly interested in Thai rice as part of government-to-government contracts. China last month agreed to buy 2 million tonnes. SEKSAN ROJJANAMETAKUN
Commerce permanent secretary Chutima Bunyapraphasara, in her capacity as head of the subcommittee handling state rice sales, said this year’s sales plan would focus on the various grades of rice, from premium-grade rice (60% of the total) to substandard grade or low-quality grains (40%).
“Since the government’s auditing panel completed a nationwide rice inspection and classified state rice stocks into Grades A, B and C, it is now easier for authorities to manage rice sales," said Ms Chutima.
However, she insisted rice sales would be conducted in a way that would prevent any impact on the price of new supplies.
Prime Minister Prayut Chan-o-cha last month told a meeting of the National Rice Policy Committee that of 17 million tonnes of rice in government stockpiles, 2.35 million tonnes were of standard quality and considered Grade A rice.
A further 13 million tonnes did not pass inspection standards but were certified as Grade B rice, meaning the grains were of substandard quality but could be improved for sale.
About 700,000 tonnes of rice had gone bad, while another 67,000 tonnes did not match with types detailed on registration records, so they were classified as Grade C.
It is estimated that there will be losses of about 680 billion baht from the previous government's pledging scheme after the government sells all rice stocks.
Ms Chutima said authorities expected to be able to call two or three bids for rice sales by March, as no new supplies will be released to the market during the period.
This year’s first bid for about 1 million tonnes is scheduled for next Tuesday, she said.
In a move to facilitate rice sales, the government will sell rice stocks on a whole-warehouse basis in addition to a stack basis, with a variety of grades and types of rice to be offered.
The bids will be open both to large and retail buyers.
Ms Chutima said since last May, when the National Council for Peace and Order took control of the country’s administration, the Commerce Ministry had called a total of four general auctions for rice stocks and achieved sales of 681,740 tonnes worth 6.36 billion baht.
The Foreign Trade Department earlier said the government expected to deliver 900,000 to 1 million tonnes of rice last year through government-to-government (G-to-G) contracts, mainly to China, Indonesia and the Philippines.
The government is committed to selling as much rice as possible via G-to-G contracts.
Several potential buyers including Hong Kong and Iraq are reportedly interested in Thai rice.
As part of the government's G-to-G efforts, Thailand signed a memorandum of understanding with China last month to sell 2 million tonnes of Thai rice, but the government did not reveal the time frame for the purchase, saying only that it would take some time.
The new rice deal with China has nothing to do with an earlier deal for 1 million tonnes agreed under the previous government.
Thailand has delivered 300,000 tonnes to China as part of the earlier deal, with 700,000 tonnes yet to follow.