Second auction for rotten rice attracts interest from private sector

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The second government auction for low-quality rice stocks has been met with positive feedback yesterday with the private sector making bids for a total of 240,000 tons worth over 1.5 billion baht.

Sixteen bidders handed in their bids for low-quality rice stocks.

This is the second bidding for these rice stocks and there were altogether 9 high bidders for a total of 240,000 tons of low-quality rice stocks stored in 64 warehouses.

In total, this represents a 67% bid of the 360,000 tons that the government has made available for auction.

Mrs Duangporn Rodpayathi, the director-general of the Department of Foreign Trade, stated that the total value of all the bids together represents an amount in excess of 1.531 billion baht.

She said that the positive response was due to the fact that the current stock of low-quality rice was of a better grade than previous stocks which make them attractive for Ethanol and livestock feed producers.

She estimated that these rice stocks can be sold as feed for around 6 -7 baht/kg while ethanol producers will buy them for around 2 -3 baht/kg.