The Public Warehouse Organization (PWO) has concluded the auction of ten-year-old rice stocks, left over from the Yingluck administration’s rice pledging scheme.
Out of the seven qualified bidders, six companies submitted bids. V8 Intertrading Co., Ltd. from Kamphaeng Phet won both warehouse bids, with a total value close to 300 million baht.
The first auction of 2024 involved approximately 15,000 tons of 100% grade 2 jasmine rice stored in two warehouses in Surin province.
V-Eat Intertrading Co., Ltd. emerged as the highest bidder for both warehouses, with a combined bid of over 286 million baht, averaging 19 baht per kilogram. The committee responsible for handling the bids will negotiate to achieve higher prices, with the winning companies to be announced on the PWO website by June 21.
The purchase contracts must be signed within 15 days of the official announcement.
Payment for the rice must be made before collection, with the first installment due within 20 days of contract signing. The rice must be collected within 20 days for quantities up to 10,000 tons, and within 30 days for quantities between 10,000 and 20,000 tons.
Deputy Prime Minister and Commerce Minister Phumtham Wechayachai stated that the afternoon session will involve price negotiations, which are expected to conclude quickly. The interest shown by buyers indicates that the rice remains in good condition despite being stored for a long time, depending on storage methods, and will require further processing by the buyers.
Thanasan Rice President Supachai Wornapinyaporn, whose company also bid, said the stored rice is still of good quality and market demand is high.
Current market prices are favorable, with new 5% white rice selling at 21.50 baht per kilogram. His company intends to export the purchased rice, seeing demand from markets like Brazil and Iraq. (TNA)
