Ideas to reduce rice stocks raise doubts

The measure is being prepared to ensure that the government can unload its huge inventory from the rice-pledging scheme in the future.

However, the "special method" is widely known to have some hidden agenda as the decision-making relies on politicians.

After the first meeting of the subcommittee for rice stock releasing yesterday, Deputy Commerce Minister Poom Saraphol said the government would consider all methods for selling state rice, focusing on those with a minimum impact on the market.

"There are many releasing plans, including silent selling to exporters, open bidding, government-to-government contracts and futures markets. But those methods must not depress rice prices," he said.

The government aims to shore up rice prices, so the releasing methods are very important and cannot be made extensively public in order to prevent prices from falling, he added.

However, a source from rice traders has opposed the government's plan to release rice stocks by the "special method", as it would open up opportunities for corruption between traders and politicians.

Rice traders have called for the government to dispose of rice gradually via open bidding to ensure transparency and fairness for every rice trader.

The government has about two million tonnes of rice left in its warehouses and the upcoming pledging project is targeting about 25 million tonnes of paddy rice to be added to its supply.

Meanwhile, the Internal Trade Department will soon ask soybean oil producers to reduce their retail price from Bt55 per litre bottle after finding that their cost of production has dropped.