Fearing Cabinet would scrap the rice bidding results, the Commerce Ministry has called for the 10 bidders who won the auction totalling 2.6 million tonnes of rice to hurry and sign contracts.

A rice-trade source has questioned the transparency of the bidding process as the ministry has refused to make public the bidding results. Instead, the ministry has rushed to get contracts signed.

"The ministry should reveal the bidding results to the public before the contracts are signed. I was wondering whether bribery has taken place. It is rumoured the approved price was much lower than the current market price," the source said.

Earlier this month, Commerce Minister Porntiva Nakasai was frustrated by the Cabinet's decision to block the ministry's proposed sale of 450,000 tonnes of corn via a bidding round. The Cabinet questioned the transparency of the process.

The ministry's proposed auction was expected to create a Bt20 billion loss for the government. The ministry had approved the sale of rice stockpiles at an average price between Bt14,200-Bt15,500 a tonne, while the current market price is quoted at Bt16,500-Bt17,000 a tonne.

The government's costs for storing the stockpiles are between Bt22,000-Bt24,000 per tonne.

The source noticed that the ministry rushed to wrap up the bidding, as politicians wanted to gain from the sale. It was reported that some politicians would have gained up to Bt2 billion from the auction.

The winners of the 2.6 million tonne rice auction include: Siam Indiga, Asia Golden Rice, Capital Cereals, Chaiyaporn Rice and Food Products, Ponglarb, Singto Thong Rice Corporation, and CP Intertrade.

Praphol Milindhachinda, Commerce Ministry secretary, said the ministry had not revealed the bidding result to the public as it wanted Prime Minister Abhisit Vejjajiva to see them first as the auction would result in huge losses for the government.

He also insisted the ministry carefully considered and tried to get the best price offered by bidders. However, sluggish market demand has resulted in lower bidding prices than expected.

Source: The Nation