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imageBANGKOK: Thailand will offer to sell 207,899 tonnes of rice from state stockpiles next week, a Commerce Ministry official said on Tuesday.

The tender for sale will open on Oct. 28 at the foreign trade department after the announcement of eligible bidders the same day.

Thailand has stockpiled around 18 million tonnes of rice, accumulated under an intervention scheme by the government of Prime Minister Yingluck Shinawatra who was ousted by the army in May. An audit by the military government found that a fifth of the stockpile was either rotten or had gone missing.

The stockpiles were built up under a programme that paid farmers well above market rates for their produce which effectively priced the grain out of world markets.

The current government wants to offload the stock to recover some of the money spent, but Duangporn Rodphaya, chief of the foreign trade department, said earlier this month that the commerce ministry wants to carry out the sale gradually so as to avoid pushing prices much lower.

Copyright Reuters, 2014

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