THE COMMERCE Ministry has postponed until next month a planned auction of Grade C (rotten) rice for industrial use, to ensure this lot has not been mixed up with good-quality rice that would demand a better price.

Commerce Minister General Chatchai Sarikulya said the ministry would delay open bidding for 1.29 million tonnes of rotten rice in the government stocks for a couple weeks.

However, the ministry will maintain its plan to auction 450,000 tonnes of good-quality rice by late July to increase the market supply as the drought cuts production.

The ministry is cooperating with the Thailand Development Research Institute, the National Farmers Council, and rice surveyors to inspect the government's rice stocks.

The ministry will set up a team to ensure that no Grade C rice finds its way into batches meant for human consumption.

Given the high demand for rice amid the drought, the Commerce Ministry is confident that Thailand will be able to export a total of 10 million tonnes this year as it expects rising demand in many markets.

In an upcoming trade mission to South Africa, the ministry will witness the signing of a rice-purchase contract for the supply of about 700,000 tonnes from Thailand this year.

Source: The Nation