The government's attempt to sell its rice stocks through the Agricultural Futures Exchange of Thailand (AFET) has won a lukewarm response from the private sector, with only five potential buyers participating in the rice sales.

The government on Friday put up 140,443 tonnes of its rice stocks for sale through AFET, the first batch of 1 million tonnes it hopes to sell through the local futures market this year. This was also AFET's first sale since 2009.

This first lot comprised 109,775 tonnes of 5% white rice in government warehouses in Nakhon Sawan, Suphan Buri, Chai Nat and Saraburi provinces. The other 30,668 tonnes were 100% grade B Hom Mali rice from state warehouses in Ubon Ratchathani, Surin and Buri Ram.

Delivery will be divided into three lots, with the first due for delivery this December and the second and third next January and February, respectively.

Names of the buyers participating in the selling plan are not yet available, with Deputy Commerce Minister Yanyong Phuangrach saying the ministry will reveal the winners and amounts of rice sold this week. He insisted AFET will be a major channel for the government to dispose of its rice stocks.

In July, AFET said it expected the government's release of pledged rice in its stockpile through the market would create at least 50,000 trading contracts for every 1 million tonnes of rice tendered through auctions for the six-month period.

An AFET executive expressed optimism the trading volume would increase by almost 10,000 contracts, with 15 tonnes per contract per month.

A Commerce Ministry subcommittee overseeing the stock release chaired by Commerce Minister Niwatthamrong Bunsongphaisan, approved the sale through AFET within six months of 500,000 to 1 million tonnes bought via pledging.

Source: Bangkok Post