Bidding rules for the government's rice stocks are being tightened.

Under the proposed change, only exporters who trade on the Agricultural Futures Exchange of Thailand (AFET) would be eligible to bid for the government's rice stocks, says Deputy Prime Minister Trairong Suwannakhiri.

The bidding regime would come into effect after the government calls new bids for 375,000 tonnes of rice, after the old tender was scrapped, he said after a national rice policy committee meeting yesterday.

The Commerce Ministry is working on a new procedure for state rice tenders, particularly the calculation method for pricing deteriorated rice, he said.

The ministry is required to complete the regulation next week.

Mr Trairong said the bidding regime would help spur futures market trading.

The government last year approved the sale of about one 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 about 700,000 tonnes.

Meanwhile, the rice policy committee yesterday approved a new regime for white rice imports under the Asean free-trade area agreement which took effect in early January.

Under the regime, rice imports would be allowed only for use as raw materials in food processing.

Rice could be imported two times a year, between May and July, and August and October.It will be allowed through five border points: Aranyaprathet of Sa Kaeo, Nong Khai, Mae Sot of Tak, Ranong, and one port at Klong Toey in Bangkok.

However, in a separate decision, the government would no longer allow 10 types of rice - mostly rice which can be grown in less than 100 days (short-growth duration, or short-term rice) - to participate in the state rice insurance scheme for the 2009/2010 main crop, said Mr Trairong.

The change is intended to promote improved quality of rice production, he added.

Source: Bangkok Post