Vietnam Commerce Ministry set to release rice stockpile

The Commerce Minister is planning to release its stockpile of more than 500,000 tonnes of rice to both exporters and millers as it foresees a suitable outofharvest season and lower production in Vietnam. A rice trader said the ministry agreed with the private sector's proposal to purchase the government's rice stock. The Foreign Trade Department will shortlist qualified exporters and millers for the purchase, and set a price that includes depreciation costs. The source also said that the authorities believe it is fair to allow both exporters and millers to make offers. "Though it is not open bidding, if offers are selected transparently, there will be no questions," the source said. Both exporters and millers are interested in purchasing all types of rice, including the white, jasmine, Pathum Thani and sticky varieties. The source added that releasing the government's stock would give Thailand a better supply of rice over the next few months even though the harvest season has ended. According to the Thai Rice Exporters Association, the country's total rice export volume dropped by 7.55 per cent to 4.86 million tonnes from January until August 9. The price of jasmine rice in the export market rose from US$1,008 to $1,017 (Bt31,818.50 to Bt32,110) per tonne; while the Pathum Thani variety rose from $779 to $787; 100percent rice from $462 to $479; and sticky rice from $996 to $1,005. A senior official said the ministry was planning to release its rice stockpile to the private sector as well as through governmenttogovernment deals. "We try to gradually reduce our rice stock but we don't want to break it as big news for fear of the price falling. We prefer to see offers that are marked to market cost," the official said, adding that the ministry planned to reduce as much of the stock as it can to make way for the crop that will be harvested in early November. The government is also considering proposals from other countries that want to import Thai rice via government to government deals.