Eight rice exporters joined the tender to buy a total 558,598 tonnes of rice called by the Commerce Ministry yesterday with the highest offer at 8,910 baht per tonne.

The rice is part of the one million tonnes of rice that the financially troubled President Agri Trading Co failed to take up for export from the ministry since it won the bids a few years ago, at an average price of 10,000 baht a tonne.

Considering the new offering prices, which are still open for negotiation, the ministry could lose up to one billion baht from lower bid prices plus other expenses and export opportunity losses.

The ministry expected to earn at least 5.58 billion baht from the rice, but would have to settle on 4.97 billion baht in the new bid.

According to Oranuj Osathananda, the deputy commerce minister, President Agri had breached its contracts and the ministry would take legal action against the firm and seek compensation for the losses.

She expects the legal process would be completed in the next ten weeks.

Chaiyaporn Rice’s offer was the highest at 8,910 baht a tonne and the lowest was quoted by Chokeanan Rice at 7,500 baht. The bidding result is expected to be announced today.

Posted: 09|7|07 at 8:36 am. Filed under: Auction News.