Rice traders have threatened to sue the government for damages if the Cabinet today cancels the Commerce Ministry's recent auction

Sompong Kittirienglarp, president of Ponglarb, one of the country's top five rice exporters, said yesterday that the firm had already filed a complaint to the Public Warehouse Organisation for refusing to allow the rice it won from bidding to leave the warehouses.

The company faces huge losses of Bt600 million for missing shipments to buyers, he said.

The government should carefully consider the bidding results as many exporters have already signed contracts with importers, he said.

The government may consider approving part of the bidding, as exporters already have orders to fill, and may bargain for better prices for the remaining stock from the bidding, he said.

Another rice exporter source said his company is closely eyeing today's Cabinet decision on whether to endorse the bidding results.

The firm would have to take legal action if the Cabinet abruptly voids the bidding, the source said.

Last week, the Commerce Ministry approved the sale of 2.6 million tonnes of rice to 17 exporters. However, it immediately suspended the transfer of the rice from warehouses as its wants to seek confirmation by the Cabinet.

Commerce Minister Porntiva Nakasai said her ministry would ask for the Cabinet's approval to release the rice inventory sold via the bidding.

She said she wanted to improve understanding of the ministry's fair and transparent procedures for farm commodity sales via tender after the Cabinet rejected the ministry's auction of corn.

Source: The Nation