Six options for release of rice proposed
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Stock clearing before pledging scheme
The Commerce Ministry plans to release rice through six channels to ensure stable prices after India said it would sell parboiled rice during the flooding in Thailand.
The six channels are open public bidding, private deals, government-to-government (G2G) contracts, barter trade, financing sales to less developed countries through soft loans, and the Agricultural Futures Exchange of Thailand.
A ministry source said yesterday that the proposal had been approved by the Cabinet. If the ministry’s rice releasing committee chaired by Deputy Commerce Minister Poom Sarapol agrees to any method, rice could be released from government stocks immediately.
Many countries are interested in purchasing rice under G2G and barter-trade arrangements. The ministry will decide soon to release some stocks, but it may not inform the public, as it is afraid the market price could drop and hurt Thai farmers.
Thailand has about 2 million tonnes of inventory remaining in the government’s hands. The government wants to clear this old stock out by year-end for the new crop coming in from the pledging scheme.
Although about 25 per cent of paddies have been destroyed by floods, rice production will not drop much.
Sufficient supply
Most of the 10 million to 12 million tonnes of paddy rice damaged in the main crop was
white rice. Farmers can plant a new crop and compensate for the lost amount within four months, so there will be enough supply to feed the domestic and global markets.
Thailand could export at least 8 million to 8.5 million tonnes of rice next year, while this year’s forecast is 10.5 million tonnes, the source said.
Thai rice exports reached 9 million tonnes in the first nine months.
