Rice to the occasion: Decade-old rice sold for a steal

V8 Intertrading Ltd from Kamphaeng Phet Province triumphed in the high-stakes bid for 15,000 tonnes of decade-old jasmine rice.

This controversial stock, a remnant of Yingluck Shinawatra’s scandal-ridden rice-pledging scheme, has been secured by V8 Intertrading for an astounding 286 million baht, averaging 19.07 baht per kilogramme.

The Thai Rice Mills Association yesterday listed the price of 100% jasmine rice at 2,950 to 3,166 baht per 100 kilogramme, translating to 29.5 to 31.6 baht per kilogramme. The auction, organised by the Public Warehouse Organisation (PWO), saw six qualified bidders vie for this vintage rice treasure.

Held in Surin province, the rice is stored in two warehouses: Kittichai 2, housing 11,656 tonnes, and Poonphol 4, with 3,356 tonnes. V8 Intertrading emerged as the highest bidder for both stocks, outbidding competitors with offers of 64.04 million baht for Kittichai 2 and 222.9 million baht for Poonphol 4. Other contenders included Sahatan Ltd, Thanasan Rice Ltd, SSMR Karnkaset Ltd, B N K Agriculture 2024 Ltd, and Sup Saeng Thong Rice Ltd.

The official announcement of the winning bid will be made this Friday, June 21, on the PWO website. The victor will have 15 days to finalise the contract.

Established on March 6, 2020, V8 Intertrading, with a registered capital of 2 million baht, operates from Kamphaeng Phet’s Khlong Khlung district. Besides its agricultural ventures, the company also deals in motorcycle sales and repairs. In 2023, it reported revenues of 2.29 million baht with a profit of 246,180 baht, reported The Nation.

ORIGINAL STORY: Seven bidders cleared for auction of 15,000 tonnes of rice

Seven potential bidders have been cleared to participate in the auction of 15,000 tonnes of rice remaining from the Yingluck Shinawatra administration’s rice-pledging scheme.

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai yesterday confirmed that the auction for this last stockpile will proceed as planned on June 17.

Eight companies showed interest and submitted documentation to verify their qualifications earlier this week. After a thorough screening process, seven of them have been approved to join the bidding process. Bids will be accepted from 9am until noon, with the winners set to be announced on June 21.

The rice up for auction, left over from the contentious rice-pledging scheme, is stored in the Kittichai and Poolphol warehouses in Surin. Phumtham expressed confidence in the auction’s success, highlighting that bidders seem unconcerned about the length of time the rice has been stored.

The government aims to generate revenue of approximately 270 million baht (US$7.4 million) and reduce storage costs, which currently amount to 380,000 baht (US$10,400) per month, reported Bangkok Post.

According to the terms, the winning bidder will have 15 days to sign a contract with the Public Warehouse Organisation (PWO) to finalise the purchase. If the winner fails to sign, the next highest bidder will be given the opportunity. Should the second offer be lower than the winning bid, the original winner must cover the price difference payable to the PWO.