Private sector bids on 2.12 mil tons of govt rice

Private sector bids on 2.12 mil tons of govt rice

 Nuppol Suvansombut

BANGKOK, 16 June 2017 (NNT) - The government's latest rice auction saw a total of 21 bidders for 2.12 million tons of low quality rice for industrial purposes. 

Of the 21 bidders, 16 offered the highest bids of about 11.5 billion baht for 96.36% of the rice being auctioned. The bidders were particularly interested in the 1.2 million tons of white rice with 5% water content. 

Department of Foreign Trade Deputy Director-General Keerati Rushchano stated that if the National Rice Policy Committee approves the deal, the volume of stockpiled rice will reduce to less than a million tons. 

Keerati disclosed that only 160,000 tons are suitable for consumption. He said due to the reduced stock, vendors have increased orders from overseas. Drought has also diminished supplies to the domestic market. 

As of June 13th, rice exports this year total 5.4 million tons, an increase of 17.7% from the same period last year. The amount is valued at 80 billion baht or a 12% increase year-on-year. 

The Department of Foreign Trade official stated that international rice prices have gained some momentum. The average selling price of white rice with 5% water content is 455 dollars a ton, and the average price for jasmine fragrance rice is 702 dollars a ton.

 

-- nnt 2017-06-17