A proposal to auction about 700,000 tonnes of rice in government stockpiles will go before Commerce Minister Mingkwan Sangsuwan for approval this week, according to Deputy Commerce Minister Wiroon Techapaiboon.

The auction would probably be split into two lots, but details remain to be worked out, said Mr Wiroon, adding that the auction was unlikely to affect domestic rice prices.

Current market prices are relatively high, with Hom Mali fragrant paddy quoted at about 13,000 baht per tonne, a rise from 8,000 to 9,000 baht a year ago. Hom Mali white rice fetches 23,000 baht a tonne, up from 16,000 to 17,000 baht at the end of last year.

World demand has been pushing up export prices of Thai rice since last year and the trend is continuing this year. Export demand has resulted in a local shortage and given rise to talk of speculation and hoarding by millers and farmers to gain higher profits.

Mr Wiroon said the auction would help ease tight supply, as the release of second-crop output is still relatively small.

Posted: 03|10|08 at 8:46 am. Filed under: Auction News.