The Commerce Ministry is set to reopen bidding for about a million tonnes of rice by the middle of this month, having suspended auctions for more than two months since the end of the harvest season, Commerce Minister General Chatchai Sarikalya said yesterday.

The ministry has decided to reopen bidding in light of expected lower rice supply in the market, while the auction should not affect the market price, thus safeguarding the interests of farmers, he said.

"The ministry will open rice bidding to general buyers, including exporters, millers and traders, as well as to industrial manufacturers, as rice grades will vary because of the quality of some stocks having deteriorated, making them unsuitable for consumption but usable in the industrial sector," he said.

The government has already held two bidding rounds this year, as a result of which it released 1.1 million tonnes of rice worth about Bt8 billion.

The ministry was to announce the terms of reference for a third round yesterday, and hold the auction in the middle of this month.

With the continued release of rice from the stockpiles through general traders, as well as via government-to-government (G2G) contracts, Chatchai said he was confident that the country would be able to export a total of 10 million tonnes of rice this year.

During the first four months, the Kingdom exported about 2.8 million tonnes, down 4 per cent year on year, with a value of Bt47.25 billion. Some 2.02 million tonnes were from the government stocks, and the remainder from private exporters.

The minister said that to continue releasing rice from the stockpiles, which now total 16 million tonnes in state warehouses, the government would continue to hold auctions and negotiate with trading partners to sell rice on a G2G basis.

The government also expects to participate soon in bidding for the supply of about 300,000 tonnes of rice to the Philippines, while hoping to conclude a G2G rice contract with China during a visit by Chinese representatives on July 2-3.

Moreover, Chatchai will visit Japan this week to discuss the possibility of Tokyo either increasing its rice import quota for Thailand or reducing the import tariff on Thai rice. During the mission, he will also discuss increased trade and investment cooperation with Japan, he added.

Meanwhile, Chatchai said the Commerce Ministry would press ahead with negotiations for free-trade agreements (FTAs) with a number of countries in a bid to ensure wider market penetration worldwide.

The ministry hopes to finalise the FTA with India this year after 15 years of negotiations and delays.

Thailand will also move to open FTA talks with Turkey and Pakistan, while the country needs to wait for a political mandate from the European Union before resuming free-trade negotiations with that economic and trading bloc, he said.

The EU requires a mandate to resume the talks given that the Kingdom is currently under a military-led government after last year's coup.

As to joining the Trans Pacific Partnership with the United States, the government will wait for the US to conclude its talks with other partners before making a decision on whether to join the pact in the future, Chatchai said.

Source: The Nation