Govt to retain buffer stock of rice this year
DESPITE the plan to clear its rice stockpiles this year, the govern-|ment will retain some buffer stock from the new harvest season as a carry-over amid concern about the effects of the ongoing drought, the Commerce Ministry said yesterday.
Duangporn Rodphaya, director-general of the Foreign Trade Department, said the government would continue with its plan to put a big lot of between 1 million and 2 million tonnes of stockpiled rice up for bidding next month, followed by further releases over the course of the year in a bid to clear current stocks by the year’s end.
However, under the release plan, the government will carefully consider putting aside safety stocks as rice output in the current harvest season is expected to be 15 per cent lower than in the same period last year, while domestic demand is forecast to remain the same – at 10 million tonnes – she said.
Although the government could find buyers for its entire rice stockpile, it would not be able to ship all the stock this year and it will retain a few million tonnes as a carry-over from the new crop harvest, she explained.
There is currently less than 10 million tonnes of rice in the government stockpiles. If the upcom-|ing fourth round of bidding this |year – for 2.23 million tonnes – resulted in around half of the for-|sale rice being sold, around 8 mil-lion tonnes would be left in the |state warehouses, Duangporn |said.
About 3 million tonnes is good quality rice, more than 2 million tonnes is for consumption or processing as feed meal, while the other 3 million tonnes is degraded or Grade C quality rice, which will be destined for the industrial sector, for use in producing biomass, fertiliser and fuel.
With a backdrop of the ongoing drought and high demand in the market, Duangporn said the government would continue with its plan to put 1 million to 2 million tonnes of rice up for bidding next month.
Meanwhile, her department reported yesterday that 64 rice traders took part in the government auction for 2.23 million tonnes of rice.
The proposed price for the bidding is in line with the market price, or slightly lower, which is acceptable, she said.
The director-general also said that with high global demand, Thailand should achieve its target of exporting 9.5 million tonnes of rice this year.
As of Monday, the country had shipped 4.6 million tonnes worth Bt71.68 billion, some 13 per cent higher in volume and 9 per cent higher in value than in the same period last year.
Since the current government came to power, a total of 9.71 million tonnes of rice has been sold out of an original stockpile of 18 million tonnes, generating revenue of Bt115.4 billion, she said.
