The government plans to call bids for another 2.6 million tonnes of high-quality rice from state stocks between now and August while transferring low-quality and substandard grains to the industrial sector.
Duangporn Rodphaya, director–general of the Foreign Trade Department, said with new output from the main crop coming after August, the June-August period was the right time for the government to call two or three bids for its rice stocks, starting with 1 million tonnes this month.
Since Prime Minister Prayut Chan-o-cha took office, the Commerce Ministry has called six bids to speed up disposal of 18 million tonnes of state stocks accumulated from previous rice pledging schemes.
The ministry has sold 2.1 million tonnes, fetching 22.4 billion baht so far.
Remaining stocks include 2.6 million tonnes of high-quality rice ready to sell and 13-14 million tonnes of substandard grade grains.
The Commerce Ministry will have surveyor companies inspect this portion of rice to determine whether it can be used as human or animal food. If neither, it will be sold to ethanol or alcohol factories.
Deputy Prime Minister MR Pridiyathorn Devakula said the government expected to take a month to decide whether to sell the low-quality and rotten grains to the industrial sector.
Of existing rice stocks, the government now controls 10 million tonnes of low-quality grade-C rice, with rotten rice making up 2 million tonnes, he said.
The decision will be based on whether the government can secure a good price.
“Previously the private sector proposed purchasing 2 million tonnes of rotten rice at five baht a kilogramme, but that offer was too low,” MR Pridiyathorn said.
“The government hopes global rice prices will edge up before it disposes of 12 million tonnes of low-quality and rotten rice.”
In a related development, the Commerce Ministry reported Thailand exported 3.6 million tonnes of rice in the first five months of this year, down by 8.51% year-on-year, worth 59.8 billion baht, down by 7.83%.