Govt to start releasing rice stocks

Commerce Ministry Boonsong Teriyapirom said the government would not limit the volume of release during the rest of the year. However, it would consider the demand in the market so as to have a minimum impact on the price.
The ministry did not report the exact amount of rice in its stockpiles, but expected that about 8 million to 8.5 million tonnes of rice would be released under the plan. They are from the 2011/12 main crop harvest season of 6.96 million tonnes of paddy, and the second crop harvest season of 9.85 million tonnes of paddy that entered the government stockpiles.
The government is planning to open pledging for the new crop in early October.
Boonsong said that the releasing process would be open in order to ensure transparency. The ministry has set up a middle price. If the price proposed by traders was too low, the government will not sell rice from its stockpiles.
Also, the ministry will clear up its old rice stocks, totalling less than 100,000 tonnes, which have been kept for eight years.
Korbsook Iamsuri, president of the Thai Rice Exporters Association, said exporters agreed with the government’s plan to release its stocks as the amounts are too large. However, he said the government should release rice in small lots to prevent a sharp fall in price.
“If the government could no longer keep too much in its stockpiles, it would make importers lower the price,” said Korbsook, adding that she believed the government would not release all its stock during this year due to limited global demand.