Fewer rice traders show interest in govt auction
Play
FEWER TRADERS have shown interest in joining the government's latest rice auction after it has gradually released rice to the market, a trade organisation says.
The Commerce Ministry on August 31 invited rice traders to apply to take part in the sixth rice auction of the year, this time for 732,806 tonnes. But only 33 have applied for qualification checks, compared with 58 who joined the last auction. The bidding will open today.
Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said there was less interest this time as the market has acknowledged that the government will continue to release rice from its stockpiles, so they do not have to purchase rice immediately.
Moreover, with prices dropping in the world market, rice traders may slow down their purchases as they expect even lower prices in the future, he said.
During the past week, the price of 5 per cent Thai white rice decreased slightly to US$360-$370 per tonne, while Vietnamese rice was quoted at $320-$330 per tonne.
Foreign Trade Department director-general Duangporn Rodphaya said this auction should still be able to draw a good number of traders as it is outside the rice-harvest season, so they will still enjoy high demand for the grain.
The ministry will consider opening another auction soon to clear out more rice stocks, she added.
