The government will sell 500,000 tonnes of milled rice for export only as it attempts to whittle down its record-high stockpile of 6 million tonnes, according to Commerce Minister Porntiva Nakasai. The rice to be sold would include 70,000 tonnes of Thai Hom Mali fragrant rice, and 430,000 tonnes of white rice of different types, the minister said yesterday after chairing a meeting of a subcommittee handling state rice sales.

Under an earlier plan, the government was scheduled to call bids from exporters yesterday. But a weeks delay has resulted after the cabinet said the ministry had to sell rice on a warehouse basis.

Each warehouse carries different types of rice, making it difficult for buyers to make decisions, as certain buyers want to buy only certain types of rice.

''We need to consult the premier first on how to address this issue before the tender is opened,'' Mrs Porntiva said.

She said the government also planned to release about 600,000 tonnes of paddy and more white rice in future periods, but insisted the bids would be for no more than 500,000 tonnes at a time.

The government is anxious to sell its rice stocks because storage costs have become very high. It acquired the rice by offering prices above prevailing market rates to farmers.

Sumeth Laomoraporn, the president of C.P. Intertrade Co, said that the small amount of rice to be released was unlikely to affect rice prices very much.

Mr Sumeth also urged the government to release some milled rice stocks for sale domestically to help ease rising local prices, as most supply has been drained into the government stocks.

Benchmark 100% grade B white rice was quoted at $591 per tonne on Wednesday, up from $563 early this month, because supply is tight at a moment.

Local packed rices have risen by 5-10 baht for five kilogrammes over the last few weeks. Thai Hom Mali rice now costs 180-190 baht per 5kg pack.

Source: Bangkok Post