Thailand should release rice stocks

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said yesterday that Vietnam, which is a major rival, is expected to export about 3.2 million tonnes of rice in the second half of the year, down from 4 million tonnes in the first half. "The Thai government must take this opportunity to release rice, as there's a lower supply in the market," he said. The sales should be in small lots to minimise any impact on the market, he said. The price of rice in the world market is expected to climb after Vietnam hiked its export price because of lower production. Vietnam recently sold 200,000 tonnes of white rice to Bangladesh, while China is interested in purchasing 600,000 tonnes, leading the price for Vietnamese rice to bulge from US$350 a tonne last month to $390 [Bt12,400] this month. Manat Soiploy, director-general of the Foreign Trade Department, said the government planned to dispose of some of its rice inventory soon, but could not reveal details as that could panic the market. "The ministry has considered releasing rice in many channels. The method will ensure that the market price will not be affected sharply, as the government is one of the major rice holders," he said. Thailand is expected to export about 8.5 million tonnes of rice this year after shipping out about 4 million tonnes in the first half, he said.