The Commerce Ministry is planning to release of 1 million to 3 million tonnes from its rice stockpiles in small lots over the next few months, when many of the Kingdom's farmers suspend planting in a bid to solve a brown-planthopper infestation.

A senior source from the ministry yesterday said it would release small stocks to the market, as prices should be on the rise due to a lower supply of rice from the second-crop harvest.

"There will be a good chance for the government to sell its rice stockpiles during the next few months, as the move should not affect market prices. Prices should not fall as a result of the government releasing these stocks," said the source.

Besides open bidding, the government will also consider releasing the stockpiles by other means in order to ensure the market price is not adversely affected.These include using the futures market and government-to-government contracts.

The source said the release of stockpiled rice via the latter method would not affect the market price, as it is a special instrument the government uses for favoured nations.

The government has about 5 million tonnes of rice in its stockpiles. The ministry last month cancelled bidding for 370,000 tonnes as it foresaw prices rising.

The Agriculture Ministry has predicted that at least 290,000 tonnes of rice in the central part of the country will have to be destroyed due to the brown-planthopper infestation.

Meanwhile, Thailand will deliver 4,000 tonnes of rice to Haiti by ship this month, out of the 20,000 tonnes it has committed to the earthquake-ravaged nation. One hundred tonnes of Thai rice reached Haiti on Monday by air.

Commerce Minister Porntiva Nakasai said yesterday that 4,000 tonnes of 5-per-cent white rice would be shipped to Haiti during the month, with the remaining 15,900 tonnes - which will be 25-per-cent white rice - set to reach the Caribbean by the end of April.

Source: The Nation