Decade-Old Rice Auction Fetches Nearly 300 Million Baht

[webfact]

 

In a significant move by the Public Warehouse Organization (PWO), ten-year-old rice stocks from Thailand's Yingluck administration's rice pledging scheme have been successfully auctioned. The auction saw considerable interest, reflecting the rice’s maintained quality despite a decade in storage.

 

Of the seven companies that qualified to bid, six submitted proposals. V8 Intertrading Co., Ltd., based in Kamphaeng Phet, emerged as the top bidder for rice stored in two warehouses located in Surin province. The firm's winning bid for the approximately 15,000 tons of 100% grade 2 jasmine rice totalled nearly 300 million baht, averaging a price of 19 baht per kilogram.

 

The deputy prime minister and commerce minister, Phumtham Wechayachai, noted that the high level of interest indicates the stored rice’s good condition, attributable to proper storage methods. Buyers will have to process the rice further, but the initial quality appears promising.

 

The auction process involved crucial terms: payment before rice collection, with the first instalment due within 20 days of contract signing. Rice quantities up to 10,000 tons need to be collected within 20 days, while larger quantities up to 20,000 tons must be collected within 30 days.

 

The successful bidders will be officially announced on the PWO website by 21 June, and contract signing between PWO and the winning companies is mandated within 15 days post-announcement.

 

One of the bidding companies, Thanasan Rice, led by president Supachai Wornapinyaporn, confirmed that the quality of the decade-old rice remains high, and the current market conditions are favorable. The company plans to export its purchases to markets such as Brazil and Iraq, capitalising on the current price of new 5% white rice, which stands at 21.50 baht per kilogram.

 

The PWO's move to auction these long-stored rice stocks not only generates significant revenue but also demonstrates the potential for well-preserved rice to meet market demands even after many years.

 

Top: File photo

 

-- 2024-06-18

 

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[Dcheech]

The military knew about this rice for a decade; since the 2014 coup. Yet they chose to let it it sit ... potentially rotting,  but for what reason?

They did not want to get money, to give back to the farmers?

They felt people would recall how Yingluck was blocked from selling the rice, by the judicial coup,  in the year previous to the real one. Somehow this would appear a victory for Ying & Reds??

We do know they had no problem, not to sell and make money for Thailand. 

I really have no idea but another of those Thai cultural stunners. A deep seated vendictiveness, so powerful that they would rather it sits, potentially rotting, & do nothing. That hurts the entire country, just no real idea where their heads are at. 

More Coffee .... Too Early ..  

 

[MarkBR]

Regarding rice, there is a shortage of risotto rice in Italy due to drought.  It retails at over 170baht/kg.  Always wonder why Thailand does not grow arborio or carnoroli rice for export to Italy.  Thais, after all, are experts at rice growing.

[sammieuk1]

It will become a Chinese delicacy the perfect side order to Pangolin soup  🤔

[OneMoreFarang]

3 hours ago, webfact said:

export its purchases to markets such as Brazil and Iraq

I wonder if they will tell them the history of this old rice.

[Tropicalevo]

4 hours ago, webfact said:

capitalising on the current price of new 5% white rice,

But it is not new. It is 10 years old! 🤮

[2baht]

..................and the rice farmer was paid??? 🤔

[redwood1]

 current price of new 5% white rice, which stands at 21.50 baht per kilogram.

 

15,000 tons of 100% grade 2 jasmine rice totalled nearly 300 million baht, averaging a price of 19 baht per kilogram.

 

 

Your telling me the buyer will be just fine with a 2.5 baht per kilo profit? If even that with all the overhead..

Sorry some thing besides the rice is rotten here...I am not buying it...

[2baht]

2 hours ago, 2baht said:

..................and the rice farmer was paid??? 🤔

..........or was that "pledged"??? 

[hotchilli]

8 hours ago, webfact said:

The auction saw considerable interest, reflecting the rice’s maintained quality despite a decade in storage.

BS

[hotchilli]

3 hours ago, redwood1 said:

..I am not buying it...

I'mm not either.

[topt]

3 hours ago, redwood1 said:

 current price of new 5% white rice, which stands at 21.50 baht per kilogram.

 

15,000 tons of 100% grade 2 jasmine rice totalled nearly 300 million baht, averaging a price of 19 baht per kilogram.

 

 

Your telling me the buyer will be just fine with a 2.5 baht per kilo profit? If even that with all the overhead..

Sorry some thing besides the rice is rotten here...I am not buying it...

Agree - was the first thought I had.

Would also have been relevant to have had a little background on 

8 hours ago, webfact said:

V8 Intertrading Co., Ltd., based in Kamphaeng Phet

 

[impulse]

3 hours ago, redwood1 said:

Your telling me the buyer will be just fine with a 2.5 baht per kilo profit? If even that with all the overhead..

Sorry some thing besides the rice is rotten here...I am not buying it...

 

They're not making a 2.5 baht profit.  They're making 2.5 baht more than they would had they bought the rice at market price.

 

[Srikcir]

4 hours ago, redwood1 said:

Your telling me the buyer will be just fine with a 2.5 baht per kilo profit

That's times 900 kilos.

[bamnutsak]

7 hours ago, Dcheech said:

Yet they chose to let it it sit ... potentially rotting,  but for what reason?

 

Warehousing fees.

 

 

 

This rice has been auctioned before, but the winning bidders could not come up with the cash.

 

 

Expecting the same now.

 

 

[Srikcir]

7 hours ago, Dcheech said:

but for what reason?

Held back by the junta that overthrew Yingluck's government as evidence in her trial brought by the junta.

 

7 hours ago, Dcheech said:

They did not want to get money, to give back to the farmers?

"The Thai government, led by Prime Minister Yingluck Shinawatra, implemented the rice pledging scheme immediately after the 2011 election, to give Thai farmers the opportunity to pledge and then provide an unlimited supply of their rice to the government at a higher price for their crops than they would obtain by selling them at market rates. The ultimate goal of the scheme was to increase rice prices to safeguard farmers from middlemen."

Aug. 7, 2013,  https://www.loc/

 

[off road pat]

7 hours ago, OneMoreFarang said:

I wonder if they will tell them the history of this old rice.

Hm,.. Somebody there will know, it's on the net, and it can not stay secret ! and in those countries they also have people that travelled to Thailand,

[OneMoreFarang]

6 minutes ago, off road pat said:

Hm,.. Somebody there will know, it's on the net, and it can not stay secret ! and in those countries they also have people that travelled to Thailand,

Yes, someone will know. But do they want to know?

Maybe they can sell Thai rice for a good price over there. And I guess on the final package in the supermarket there won't be a warning: This rice is over 10 years old. Make sure you wash it at least 15 times. 

[BangkokReady]

9 hours ago, MarkBR said:

Always wonder why Thailand does not grow arborio or carnoroli rice for export to Italy.

 

They probably want to be able to say "this is Thai rice".  If they grew a different rice, then it would be like admitting that Thai rice isn't the best.

[dirtybirty]

Can see Thai rice reputation going down the loo then, and I bet strange gastroenterological symptoms sweeping the country and beyond. 

All there gonna do is dilute it with fresher rice, bulk it up

[john donson]

no investigation how much the storage costs are for 10 years ?

 

somebody got rich storing this