Release of in-stock Thai rice will not affect market price, says Minister
Release of in-stock rice will not affect market price, says Minister
BANGKOK, 19 January 2015 (NNT) – The Minister of Commerce has assured releasing the first batch of the government’s in-stock rice in late January will not affect the price of rice due to the market’s high demand.
According to the Minister of Commerce Gen. Chatchai Sarikulya, the government has been managing the rice auctioning with fair principles. All procedures are transparent and there have not been reports of misconduct.
He mentioned that the first whole-stock and by pile rice auction, approximately at 1 million tonnes, will take place by the end of January. This selling will not have any effects to the regular price of rice in the market even though the amount of rice released is quite large.
He has said that the demand in the market is still high, and the timing in each round of rice release has been designed to meet the market’s demand and cause minimal effects to the current pricing.
Meanwhile, the Director-General of the Department of Foreign Trade Duangporn Rodphaya has revealed that the department has been preparing the Terms of Reference (TOR) for the rice auction. The TOR is expected to be announced within this week.
She has said that there are about 200 rice warehouses participating in this auction, while the department is considering the pricing margins formula and the floor price for the auction.
Price proposers who have proposed prices above the floor price will be eligible for the auction, while the rice will be sold to the proposer with the highest price. Payment in instalments will be accepted.
-- NNT 2015-01-19