The government is being urged to continue selling its rice stocks, but the amount to be put up for auction should be limited to mute any effect on the rice prices for the coming harvest.

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said companies considered it imperative that the government keep selling its rice stocks, in lots of 100,000 to 200,000 tonnes. Demand is growing among East African countries for old rice, which is cheaper than newly harvested grains.

"Thailand could lose its opportunity to sell rice if th
e government halts or delays the sale from the coming harvest to try to support prices, as India or Pakistan could fill the void," he said.

Mr Chookiat said the private sector expected the next rice harvest for the main crop, due in the fourth quarter, to be below 27 million tonnes of paddy.

The Agriculture Ministry forecast Thailand's rice supply in the 2015-16 season at 37 million tonnes of paddy, with 27 million in the main crop and 10 million in the second crop. Those figures translate to 25-26 million tonnes of white rice, higher than 21-million-tonne outlook by the US.

The government is estimated to hold 15-16 million tonnes, down from the 18 million carried during the previous government.

Free-on-board Thai rice prices were quoted yesterday at US$435 a tonne, cheaper than Vietnamese grains at $445.

Mr Chookiat forecast the country's rice shipments this year at nearly 11 million tonnes, citing strong export figures of 8.2 million tonnes for the first nine months. For the fourth quarter, Thailand should sell 900,000 tonnes a month on average.

Commerce Minister Chatchai Sarikulya said the government would be cautious in selling state stocks to prevent any effect on rice prices in the upcoming harvest.

Source:  Bangkok Post