Authorities have pledged to closely supervise the government's next auction of rice stockpiles to limit any negative effect on domestic prices and protect the reputation of Thai rice.
Duangporn Rodphaya, director-general of the Foreign Trade Department, said provincial officials were expected to complete the inspection of rice stored at 1,800 warehouses nationwide by mid-October as ordered by the National Rice Policy Committee chaired by Prime Minister Prayut Chan-o-cha.
The committee earlier this month assigned provincial officials to complete their inspection in 30 days to verify the exact amount of good-quality and rotten rice in the 13.5 million tonnes the state holds.
The findings will help the government decide on proper pricing for sale, after some critics said auction prices were too low.
Stocks are kept in warehouses in 51 provinces
Estimates are that 4.6 million tonnes are substandard and 1.3 million tonnes are rotten.
The 13.5 million tonnes were accumulated from the rice-pledging scheme run by the previous government from 2011-14.
As the scheme paid farmers 15,000 baht a tonne for paddy or up to 24,000 baht a tonne for milled rice, Thai grains lost competitiveness in the global market, resulting in the huge stockpile.
Since Gen Prayut took office, the Commerce Ministry has held 10 auctions (including six this year) in a bid to speed up disposal of a combined 18 million tonnes of state rice stocks accumulated from past rice schemes.
The state has sold 4.55 million tonnes for 49.5 billion baht.
The subcommittee overseeing the accounting of rice subsidy schemes estimated losses from 15 programmes from 2004-14 at 682 billion baht.
The Yingluck Shinawatra government alone was responsible for 518 billion baht.
In the latest attempt to unload state stocks, the Commerce Ministry yesterday called its seventh auction of the year for 462,931 tonnes of rice.
A slight change in bidding conditions means floor prices will not be disclosed in the terms of reference, potentially bringing about more price competition.
Interested bidders have until next Tuesday to submit their purchase intent.
Chookiat Ophaswongse, an honorary president of the Thai Rice Exporters Association, said purchase demand was likely to increase late this year and early next.
Year-end festive celebrations and lower supplies amid drought conditions would be the reasons.
Mr Chookiat expects rice prices will rise by 8-10% in December and January.