The rice is destined for industrial purposes and for producing animal feeds and ethanol.
The rice stocks are currently being stored in 278 government warehouse in 39 provinces.
There are altogether 17 types of degraded rice and bidders were made up entirely of factories.
All buyers are required to declare what the rice will be used to produce in order to qualify for the bidding.
Result of the bids will be officially declared on March 23.
According to the ministry, the clearing of this batch of rice stocks will mean that there will be approximately 3 million tons remaining in government warehouses.
This will help in significantly lowering storing costs.
The government plans to clear all remaining rice stocks within this year.
Officially, the government stated that the clearing of such a large amount of degraded rice will not affect the market price for rice because degraded rice stocks are not meant for human consumption but is traditionally employed in the production of animal feed and ethanol.