Ministry mulls direct sales of small rice packs to consumers
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THE COMMERCE Ministry is considering selling small packs of rice directly to consumers as part of its policy to clear out the government's stocks.
Prime Minister Prayut Chan-o-cha, chairman of the Rice Policy Committee, has called for the ministry to urgently sell rice via various channels to reduce carrying costs and cut losses for the country. The rice stored during the pledging project of the past government has continued to deteriorate in quality.
Commerce Minister Chatchai Sarikulya said yesterday that the ministry will soon set up a working team to consider the possibility of producing rice packs for retail.
It will have to consider the quality of the grains and allow some agencies to be responsible for improving the quality of rice and for distributing it to traders.
The ministry has been only releasing rice through auctions and government-to-government deals.
The ministry will discuss the scheme with agencies including the Public Warehouse Organisation, Marketing Organisation for Farmers, Foreign Trade Department and Internal Trade Department.
The ministry will study market supply and demand to estimate the appropriate quantity of rice to produce and distribute so that farmers and traders are not disadvantaged.
Among the 16 million to 17 million tonnes of rice remaining in the government’s inventory, most could be produced for retail and export. About two million tonnes of rice are of good enough quality to sell as packed rice, while the rest could be given to companies to upgrade before selling to consumers.
The ministry will also consider selling small lots to avoid upsetting the trading mechanism.
A source from a rice pack trader said that there is a plentiful supply of packed rice in the market, so the government should carefully consider becoming a trader, otherwise it could distort the market mechanism and hurt existing traders.
If the government decides to sell small rice packs, it should do so gradually in small quantities at a price that was in line with the market price, the source said.
The ministry is set to open bidding next Monday for 1.06 million tonnes of 12 varieties of rice such as Hom Mali rice, white rice, husked white rice, husked Hom Mali rice, Pathum Thani rice and sticky rice. Chatchai said many bidders are expected to join the third auction as rice is in low supply in between harvests.
