Deputy Prime Minister Trairong Suwankhiri will propose termination of government rice bidding to the prime minister this week out of concern over possible falling rice price in the market. However, the trade ministry has already continued the process.
This afternoon, the Commerce Ministry allowed private firms to submit tenders for distribution of 500,000 tons of rice in the government's stockpile.
Commerce Minister Porntiva Nakasai confirmed that the rice bidding is continuing since it was approved by a subcommittee on rice distribution under timing suggested by Prime Minister Abhisit Vejjajiva.
Porntiva said the bidding will be over if no one offers the price and the matter will lead to a loss in opportunity to shore up the price.
Previously, Deputy Prime Minister on economic affairs Trairong Suwankhiri disclosed after a meeting with representatives of rice milliers and farmers that he will propose that Prime Minister Abhisit Vejjajiva, as chairman of the National Rice Policy Committee, suspend the distribution of 500,000 tons of rice by this week.
Trairong is concerned that the distribution will drag down the local rice price. He also insisted the government has no plan to sell another 2 million tons of rice in its stock as speculated.
Director general of the Foreign Trade Department, Vichak Wisetnoi, said the bidding examination will be done tomorrow and the department will try to set the distribution price close to the market price.
The result will be forwarded to the National Rice Policy Committee and the Cabinet for further endorsement.
Source: TANN
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