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Firms want flexibility in rice sales .


Rice exporters want the flexibility to sell rice locally as well as abroad when the government reopens bids to sell its stocks totalling 5.5 million tonnes. They also favour sales in smaller lots.

"Don't forget that local consumers consume 9 million tonnes of milled rice a year," said Sumeth Laomoraporn, president of C.P. Intertrade Co.

"The domestic rice market is also important. Should we be allowed to sell domestically, price competition from potential bidders will become more active, as local packaged rice manufacturers will be attracted to participate, driving up the government's rice selling prices."

Mr Sumeth also said bids should be for smaller lots of 500,000 tonnes or lower instead of 2 million tonnes, so that smaller exporters could participate.

Chookiat Ophaswongse, president of the Thai Rice Exporters Association, suggested that the government also set median prices and buying quotas for each exporter should bidding interest be heavy.

"Instead of allowing the private sector to propose bids, the government should function more as the seller," he said.

Exporters plan to seek explanations today from Prime Minister Abhisit Vejjajiva today about why an earlier bid was scrapped, said Sompong Kitireanglarp, president of Ponglarp Co. His was one of 17 companies that won bids for 2.6 million tonnes of second-crop rice from the Commerce Ministry.

"We also want to ask the premier himself what the exporters have done wrong," said Mr Sompong. "We also want to convey a direct message to the premier about how the government should handle 124,000 tonnes of rice already paid for by winning exporters."

Ponglarp signed a contract on May 13 with the Public Warehouse Organisation (PWO) to buy 220,000 tonnes of rice worth 4 billion baht, and has paid more than 500 million baht so far.

The cabinet last month stopped the ministry's rice sales for fear of losses, even though deals were signed with some winning companies.

Mr Abhisit reiterated yesterday that all deals for agricultural products in the government's stockpiles should not result in losses and harm the national interest.

Source: Bangkok Post

 


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