The government yesterday endorsed the sale of about half the almost 1 million tonnes of rice put up in the year's first auction.
Commerce Minister Chatchai Sarikulya said the government agreed to sell a combined 496,243 tonnes worth 7.85 billion baht to 38 winning bidders in the first auction of state rice stocks for 2015.
Late last month, the Commerce Ministry put 999,763 tonnes of rice up for sale on a whole-warehouse basis for the first time, with the floor prices announced in advance.
The floor price for white rice was set at 8-10 baht a kilogramme, while that for for Hom Mali rice was set at 25 baht per kg.
The auction fetched 11 baht per kg on average for white rice, with the offer prices for Hom Mali reaching as high as 31 baht per kg.
The rice put up for auction included 850,000 tonnes of 5% white rice and about 150,000 tonnes of Hom Mali.
Authorities estimate the cost of the rice put on sale at 11.7 billion baht.
Gen Chatchai said the government could sell 400,000 tonnes more if it agreed on the purchase proposal of one qualified bidder whose qualifications were rejected.
A Commerce Ministry source said the proposal belonged to Empire Development Co, which offered to buy more than 400,000 tonnes of rice in 47 warehouses.
Authorities' investigation found Empire Development might have links to Siam Indica Co, as the two share the same address and Empire's authorised director was formerly a Siam Indica director and shareholder.
Siam Indica had been barred by authorities from joining the bidding after its indictment by the National Anti-Corruption Commission for graft related to the rice-pledging scheme.
Gen Chatchai said the Commerce Ministry would call a second auction for an additional 1 million tonnes of state-held rice later this month.
Charoen Laothammatas, president of the Thai Rice Exporters Association, said the year's first auction by the government was considered a success, indicating market demand for rice continues to remain strong.
"Despite the amount of rice stocks put up for sale being relatively huge in the first auction, the government's ability to sell almost half the total was more than satisfactory," he said.
"This shows demand for rice is strong at both the local market and for export. This is a perfect period now for the government to increase its rice stock disposal."