Govt announces major push to release rice from stockpiles
The government plans to release between 500,000 and 1 million tonnes of milled rice, 400,000 tonnes of paddy for parboiled-rice exports per month, and another 500,000-1 million tonnes of rice in the futures market over the remainder of the year.
These moves form the central part of a plan to accelerate the clearing of the government’s stockpiles, given that the next harvest season begins in October.
After a meeting of the rice-release subcommittee yesterday, Deputy Prime Minister and Commerce Minister Niwatthumrong Boonsongpaisan said the government would tomorrow finalise the details and conditions for rice bidding, so that the first auction can be kicked off within two weeks.
The government’s plan is to gradually open bidding for every type of rice grain in its stockpiles each month.
Between 500,000 and 1 million tonnes of white, jasmine and sticky rice will be released under the programme, with each auction only allowing for bidding for small lots.
About 400,000 tonnes of paddy will also be sold for production as parboiled rice each month, he said.
Niwatthumrong said the government needed to clear more of its stocks in order to increase the cash contribution returned to the country’s coffers.
Moreover, the next pledging scheme is scheduled to begin in late October, when newly harvested rice will enter the state’s warehouses. The government therefore needs to clear space for the new crop, he added.
Rice inventory will be released to both millers and exporters for domestic and overseas sales.
The minister said the plan to release huge rice stockpiles each month should not affect domestic prices or farmers’ incomes, since the government would be maintaining the pledging scheme. However, the price of Thai rice in the world market could fall slightly in the short run. To minimise the impact from the rice-release programme, the government will gradually auction off its stock in small lots, said Niwatthumrong.
He said the government would also continue to release rice under government-to-government contracts, and it would visit six targeted countries within the next two months.
Niwatthumrong and Deputy Commerce Minister Yanyong Phuangrach will lead a mission to partner countries that signed a memorandum of understanding with Thailand, in order to urge them to import rice from the Kingdom.
