The government's latest effort to sell its rice stocks has drawn an overwhelming response from interested bidders, with 18 potential buyers yesterday submitting their bids to buy 467,623 tonnes in a tender offer.

The tender offer has been the most active in two years since the government has put up its massive rice stocks for sale, with over 10 billion baht expected to be raised from this tender offer.

The rice stocks put up for sale are from the 2011-12 main crop, 2012 second crop and the first round of 2012-13 harvest season slated both for export and domestic consumption.

Of the total, 5% white rice would represent 100,360.74 tonnes only for export, with Thai Hom Mali rice 100% Grade B, provincial fragrant rice, Pathum Thani fragrant rice, 10% white glutinous rice and broken rice accounting for the rest.

Surasak Riangkrul, director-general of the Foreign Trade Department, said delivery of the rice to the winners is expected within a month and a half.

The delivery period is relatively short compared with three months taken earlier.

According to Mr Surasak, since the start of this year, the department has acquired over 14 billion baht from the rice sales. Since the rice-pledging programme was implemented, the department has fetched over 170 billion baht.

He said the department has sold almost 3 million tonnes both through tender offers and private purchases, adding that the department will boost tender offers to speed up the sale of state rice stocks.

According to Mr Mr Surasak, given the prospect of a severe drought this year, millers are reportedly showing an interest in buying up to 500,000 tonnes of rice from the government.

"The government has been trying to dispose of the rice stocks mainly through tender offers about 2-3 times a month. Next week it will call a new tender for 500,000 tonnes,'' he said.

The department will call a subcommittee meeting on rice sales today to consider the purchase proposal before submitting it to the commerce minister for final approval.

An industry source attributed the active tender offer this time mainly to flexible and easing conditions, as the government allows successful buyers to sell domestically as well as export, leading several millers who are mostly packed rice manufacturers to participate in the latest bid.

The millers mostly buy 10,000 tonnes instead of 100,000 tonnes as in the past.

The source added that the buying prices proposed yesterday by the private sector are likely below the market prices, which are now quoted at 13,000-13,500 baht a tonne for 5% white rice.

Source: Bangkok Post