A sharp fall in rice prices and flexible conditions have drawn an overwhelming response from interested buyers to the caretaker government's latest rice auction, with 34 bidders taking part.

The government yesterday put 500,000 tonnes of its stockpiled rice up for bid as part of an effort to raise funds for farmers.

At the same time, rice traders submitted their proposal to buy 517,000 tonnes of 5% white rice, 100% Hom Mali fragrant rice, provincial rice and broken rice.

The government's auction is the third held this year.

Participants in the bidding were the most numerous since the Yingluck Shinawatra government began selling rice stocks through general auctions, with new traders joining the familiar giants.

Manat Kitprasert, president of the Thai Rice Millers Association, attributed the active turnout to the fall in rice prices and a further downward trend.

"Cheaper rice prices make the government's rice stocks more appealing," he said.

Prices for paddy with 15% moisture are now quoted at 7,500-7,800 baht a tonne, while 5% white rice trades at 12,500 baht a tonne.

Global prices for new 5% white rice are quoted at US$440 (14,245 baht) a tonne, while those for old grains are $370 a tonne, closer to Vietnamese rates.

Since launching the rice pledging scheme in 2011, the government has called for bids 14 times to sell rice stocks through general auctions.

The state has sold 3-4 million tonnes through general auctions and 13 million tonnes altogether, raising 173 billion baht.

Those proceeds pale next to the 870 billion baht the government spent on the scheme over the past three years.

Surasak Riangkrul, director-general of the Foreign Trade Department, said the government is committed to continuing disposal of its rice stocks and plans to call a bid tomorrow to sell 200,000 tonnes via the Agricultural Futures Exchange of Thailand.

The government has sold 278,962 tonnes of rice through AFET since last October, raising 3 billion baht.

Source: Bangkok Post