The government's first rice auction this year drew active interest from potential buyers, with 31 qualified bidders proposing to buy a combined 397,639 tonnes for 3.31 billion baht.
The proposed purchases account for 70% of the total 570,000 tonnes of rice put up for the latest auction called early this month by the Commerce Ministry, a mix of grains for human consumption and industrial use.
Foreign Trade Department director–general Duangporn Rodphaya said 16 qualified bidders proposed buying 245,262 tonnes of rice for industrial use from 64 state warehouses, worth 1.53 billion baht.
Meanwhile, another 15 qualified bidders proposed purchasing a combined 152,377 tonnes of rice for human consumption from 35 warehouses for 1.78 billion baht.
Ms Duangporn said authorities will submit the proposed purchases for consideration by the panel handling the rice sales today before submitting them to the National Rice Policy Committee for final approval at a meeting on Feb 24.
The outcome is likely to be announced next week, she said.
The government currently holds 13 million tonnes of rice in its stocks, down from 18.7 million accumulated from previous subsidy schemes. Two million tonnes are classified as standard grade, suitable for human consumption, with 11 million tonnes a mix of different grades including low-quality Grade C, which is not fit for human consumption.
The Commerce Ministry called an auction of the first batch of low-quality rice for industrial use, totalling 37,412 tonnes, from Nov 30-Dec 1 last year. It sold 21,229 tonnes, fetching 198 million baht.
Ms Duangporn said the ministry was committed to selling as much of the rice stocks as possible this year.
Authorities handling rice sales are proposing the government sell 11 million tonnes of state rice stocks that are a mix of different grades.
Disposal could be made on a warehouse basis.
The government said in January 2015 it was committed to disposing of the rice stocks within two years.
It estimated losses of 680 billion baht from previous governments' pledging schemes once the rice is sold.
The government faces daily expenses of 30 million baht to maintain the rice stocks.
The Commerce Ministry reported in late 2015 that since the May 2014 coup, 8.27 million tonnes of state rice from warehouse stocks and new harvests had been sold, fetching 103 billion baht.