Warehouse charges cost B510m a month

The government is committed to disposing all 8 million tonnes of state rice stocks next year.

According to Duangporn Rodphaya, director-general of the Foreign Trade Department, most of the existing 8 million tonnes of rice stocks are white rice, and 5 million tonnes of the total is poor-quality grain unfit for human consumption.

The remaining 3 million tonnes are mixed-grade in quality, suitable for human consumption.

The government has been paying 510 million baht a month for rice warehouses.

According to Mrs Duangporn, the Commerce Ministry is in talks with the Energy and Industry Ministry to find proper ways to use rice stocks unsuitable for human consumption for industrial purposes, such as biomass and ethanol production.

For good-quality grain, she said, the authorities will call general auctions at opportune periods.

Since the May 2014 coup, 8.68 million tonnes of rice has been sold via 23 auctions, fetching 89.2 billion baht.

Government-to-government rice deals have unloaded an estimated 3.8 million tonnes worth 50 billion baht.

The state-held rice stocks have fallen sharply from the 18.7 million tonnes accumulated through various rice-pledging schemes during 2011-14.

According to Mrs Duangporn, lower rice supply will benefit the government if it succeeds in selling existing state-held stocks.

The government expects Thailand's rice shipments to remain strong, with this year's figures possibly exceeding the Commerce Ministry's target of 9.5 million tonnes.

As of Dec 14, she said Thailand had shipped 9.3 million tonnes, up 2% from the same period last year, fetching US$4.17 billion.

The top five importers were Benin, China, Ivory Coast, South Africa and Cameroon.

Of the total exports, white rice made up for 50%, hom mali rice 25% and parboiled, glutinous and Pathum Thani fragrant rice comprised the rest.

Mrs Duangporn said hom mali rice shipments have risen this year to 2 million tonnes from 1.5 million tonnes last year, mainly to China, Indonesia and the Philippines.

"Thailand's rice prices have gradually improved thanks to the government's myriad measures, teamed with the private sector promoting rice sales," Mrs Duangporn said.

Source:

by PHUSADEE ARUNMAS

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