The government is preparing to sell 3.8 million tonnes of milled rice and 2.2 million tonnes of tapioca from its stockpiles in a bid to ease its huge stocks and reduce warehousing costs.

Jasmine rice would account for 700,000-800,000 tonnes with white rice the rest, according to Praphol Milindhachinda, the secretary to Commerce Minister Porntiva Nakasai.

Mr Prapol, who chaired the meeting of the rice sales sub-committee yesterday, said 3.04 million tonnes would be sold through a bidding process to rice exporters. The remaining 760,000 tonnes of rice would be sold through the Agricultural Futures Exchange of Thailand (Afet).

According to Mr Prapol, the sub-committee believes the time is ripe as Vietnam is not selling during this period and India is busy with its general election and might not export until July. Vietnam's next rice sale is scheduled for the end of May.

The sales plan also aims to reduce the government's financial warehousing burden, now at 200 million baht a month.

Some 7.7 million tonnes of paddy from the second rice crop is entering the market, with the first crop due in November. Last season's first-crop production was 23.7 million tonnes of paddy.

Mr Prapol said world rice prices are now steady at US$568 per tonne free on board (FOB) for 5% white rice and $874 per tonne for jasmine rice.

Conditions of the rice bids will be unveiled over the next two weeks with bidding likely to open in May.
The government pledged to sell its rice at "appropriate" prices and set up a committee to handle benchmark pricing, conditions and negotiations.

Meanwhile, Yanyong Phuangrach, director-general of the Internal Trade Department, said the sub-committee handling tapioca marketing yesterday approved the sale of 2.2 million tonnes of tapioca chips and 730,000 tonnes of tapioca starch to foreign buyers through a bidding process.The amount excluded 200,000 tonnes of tapioca chips to be sold through Afet.

Source: Bangkok Post