Ministry reports good bids at rice auction
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Almost 40 traders joined the Commerce Ministry's latest rice auction yesterday, which mostly resulted in deals above the "floor price" thanks to high demand in the market during the off-season and more confidence in the transparency of the bidding proc
“The working committee will bargain for the best price after some traders offered to purchase rice from the same lots and warehouses,” said Duangporn Rodphaya, director-general of the ministry’s Foreign Trade Department. “The prices offered were quite satisfying as many were above the floor price.”
Duangporn said about 90,000 tonnes of rice should have been sold and another 40,000 tonnes would be under negotiation for a higher price.
Despite the lack of white rice at the auction, 38 traders were present. Exporters, packers and millers were among the bidders for almost 140,000 tonnes of various kinds of rice, including 100 per cent Hom Mali rice, broken white rice A1 super, 10 per cent white glutinous rice and husked Pathumthani fragrant rice.
The rice came from 31 warehouses in 21 provinces. There was no white rice because the government’s inspection teams have not completed the quality testing for that variety.
Bids ranged from Bt26.50 per kilogram for Hom Mali rice (Bt26,500-Bt29,500 per tonne) and Bt14 per kilogram for 10 per cent white glutinous rice (Bt14,000-Bt18,500 per tonne).
Duangporn said that after the completion of the bargaining process, the department would propose the results to the Rice Policy and Management Committee for consideration next week. The committee would also plan the next auction in order to continue the release of rice from government stocks.
Early last month, the ministry called for bids for 167,000 tonnes of rice, the director-general said, adding that it sold 73,200 tonnes to 11 traders after bargaining for higher prices. The sale generated about Bt740 million.
According to the Thai Rice Exporters Association, the market price of 100 per cent Thai Hom Mali rice was US$1,084 per tonne as of Wednesday. The price of 10 per cent white glutinous rice was $889 per tonne.
Manus Kitprasert, president to the Thai Rice Mills Association, said the market price had dropped slightly during the past week before the auction. However, because there was no white rice, the price had edged up to between Bt8,100 and Bt8,200 a tonne for paddy white rice.
He said the government could continue selling rice from the stockpiles because it was not the harvest season.
Because of concerns about flooding, farmers have also delayed planting their next crop.
Manus said the price of white rice should not fall because, in large part, of the bidding process.
