The government will open bids to sell 500,000 tonnes of rice from stockpiles to exporters next week as part of its accelerated plan to sell 1-2 million tonnes ahead of the new harvest of second-crop paddy to reduce costly stock.

Vichak Visetnoi, director-general of the Foreign Trade Department, said the Commerce Ministry next Monday would offer 350,000 tonnes of 5% broken white rice and 150,000 tonnes of Pathum Thani fragrant rice to exporters.

"The timing is right during the next two months to release stocks as key exporters such as Vietnam and Burma have slowed their shipments while demand remains strong," he said.

Commerce Minister Porntiva Nakasai said the ministry was also speeding auctions of 300,000 tonnes of milled rice with the Agricultural Futures Exchange of Thailand. The government last year approved the sale of about 1 million tonnes of Hom Mali and 5% white rice through the futures market under a "basis auction" method in which AFET rice futures are used as the reference.

The market has conducted auctions for state stocks totalling 700,000 tonnes.

According to Mrs Porntiva, the National Rice Policy Committee recently directed the ministry to study a plan to sell another 1 million tonnes via the futures market this year.

Mr Vichak said the government was likely to sell as many as 700,000 tonnes under a government-to-government programme this year.

"There is a lot of demand for G-to-G rice deals now. Malaysia wants to buy about 100,000 tonnes, while Mauritius needs about 50,000 tonnes, Indonesia needs 100,000 tonnes, and the Philippines is preparing to open bids for 600,000 tonnes," he said.

The government estimates it is holding around 5.6 million tonnes of milled rice bought from farmers to support prices in the previous season.

Source: Bangkok post