Rice Auction Fetches 19.4 Billion Baht

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The Thai government sold nearly 2 million tons of rice in its latest auction, the largest amount since the National Council for Peace and Order took over. The auction generated about 19.4 billion baht.

Foreign Trade Department director-general Duangporn Rodphaya said the latest auction accounted for about 89.2% of the 2.23 million tons the government put up for bid under the military administration.

Offers have been submitted by 64 bidders, the department reported on Wednesday. The highest bids came from 39 bidders for a combined 1.99 million tons from 152 warehouses.

Although the grains are old, the auction fetched a good price, says Ms. Duangporn. The proposed price for the 5% white rice was 10-11 baht per kilogram. The market price for new grains is currently 13-14 baht per kilogram.

The latest auction was comprised of 16 types of rice, including white, Hom Mali and glutinous. The rice is being kept in 173 warehouses in 35 provinces.

Since May 2014, 6.4 million tons of the estimated 18.7 million tons of rice in warehouses has been sold through 15 separate auctions. The sales have generated 66.6 billion baht. Deals with other governments have generated 50 billion baht through the sale of 3.8 million tons of rice.

According to government officials, there is less than 10 million tons of rice in stock. Ms. Duangporn says the government will likely hold the next auction in July for 1-2 million tons of rice.

Thailand has exported 4.6 million tons of rice this year, up 13%. Rice shipment have generated 71.7 billion baht. Around 44% of the shipments were sent to Africa, while another 40% went to Asian countries.

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