Volatility in global rice prices has stalled attempts to sell the government's huge rice stocks, estimated at 6 million tonnes.
The Foreign Trade Department yesterday proposed that the National Rice Policy Committee impose selling guidelines, which would cover the amount sold through lots, in government-to-government deals or on the Agricultural Futures Exchange of Thailand.
But Yanyong Phuangrach, the permanent secretary for the Commerce Ministry, said the committee had yet to reach a conclusion and had asked the Foreign Trade Department to set guidelines.
The committee considers a rushed sale unnecessary given rising prices.
The government has held talks with buying countries including Malaysia, Indonesia and India, but has failed to finalise any deals as price volatility has made it tough both for buying countries and the government to reach decisions.
Mr Yanyong said the committee was likely to hold its next meeting in early 2010.
The regional benchmark export price for Thai 100% grade-B white rice gained for a sixth week last week to US$638 a tonne, the highest since March.
Rice futures traded in Chicago have surged 43% from this year's low in March and last traded at $16 per 100 pounds, 6.5 cents below this year's high.
Global rice production has lagged demand in four of the past eight years and rising consumption is expected to erode global stockpiles by 41% to 85.9 million tonnes in the 2009-10 marketing year, down from a record 146.7 million tonnes in 2001-02, according to the US Department of Agriculture (USDA).
Sumeth Laomoraphorn, chief operating officer of C.P. Intertrade, said global prices of benchmark 100% grade-B white rice were expected to stand firm at about $600 per tonne for the next three months and gain by about 20% next year.
"The rice price outlook is promising next year. Global supply is likely to become increasingly tight ," he said.
In a related development, the rice policy committee chaired by Deputy Prime Minister Korbsak Sabhavasu approved the options plan to cover second-crop paddy from Jan 1 to April 30 next year.
The committee has approved insured prices for glutinous rice, white rice and Pathum fragrant rice at 9,500 baht per tonne, 10,000 baht and 12,000 baht, respectively, but has yet to decide on the amount of paddy under the scheme.
Source: Bangkok Post
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