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.

In related news, a dedicated panel was established to manage the auction of 15,000 tonnes of rice remaining from the contentious rice-pledging scheme initiated during former Prime Minister Yingluck Shinawatra’s tenure. This announcement came from Commerce Minister Phumtham Wechayachai.

The panel is set to draft the terms of reference for the auction, with completion expected by the end of this month. The National Rice Policy and Management Committee has already granted the panel the authority to proceed without further review.