10 Years Old Thailand Rice Runs Out Of Auction

Archival photos - A number of workers lowered imported rice from Thailand from a Panamanian-flagged cargo ship at Malahayati Port, Aceh Besar District, Aceh, Monday (10/6/2024). BETWEEN PHOTOS/Ampelsa/Spt.

JAKARTA - The Thai Public Warehouse Organization (PWO) on Monday said it had completed a ten-year-old rice stock auction, which is the remainder of the government rice guarantee scheme during the time of Prime Minister Yingluck Shinawatra.

Of the seven eligible bidders, six companies made bids.

Reported by ANTARA from TNA-OANA, Monday, June 17, the company V8 Intertrading from Kamphaeng Phet won both warehouse offers, with a total value close to 300 million baht (Rp 134 billion).

The first auction in 2024 involved about 15,000 tons of pure quality 2 jasmine rice stored in two warehouses in Surin province.

Meanwhile, the company V-Eat Intertrading emerged as the highest bidder to the two warehouses, with a combined offer of more than 286 million baht (Rp 127 billion), with an average of 19 baht (Rp 8,494) per kilogram.

The committee in charge of handling the offer will negotiate to reach a higher price, and the winning company will be announced on the PWO website on June 21.

The purchase contract must be signed within 15 days of the official announcement.

Rice payments must be made before taking, and the first installment must be paid within 20 days of signing the contract.

Rice must be collected within 20 days for up to 10,000 tonnes, and within 30 days for between 10,000 and 20,000 tonnes.

Deputy Prime Minister and Minister of Trade, Phumtham Wechayachai, stated that the afternoon session would involve price negotiations, which are expected to be completed quickly.

"The interest shown by the buyer shows that the rice remains in good condition even though it is stored for a long time, depending on how to store it, and requires further processing by the buyer," he said.

President Thanasan Rice Supachai Wornapiporn, whose company also made bids, said the stored rice was still of good quality and high market demand.

The current market price is profitable, with 5 percent white rice just being sold at a price of 21.50 baht (Rp 9,611) per kilogram, according to him. The company intends to export the rice purchased, seeing demand from markets such as Brazil and Iraq.