The government is set to call its biggest rice auction to capitalise on higher demand as new supply wanes.
Duangporn Rodphaya, director–general of the Foreign Trade Department, said the national Rice Policy Committee chaired by Prime Minister Prayut Chan-o-cha gave the green light for the department to open the 16th bid for rice stocks, this time for 2.24 million tonnes.
"Domestic and overseas rice markets are seeing prices rise, thanks to demand because of widespread drought lowering and delaying production," she said.
Ms Duangporn said rice stocks put up for auction would comprise 16 rice types including Hom Mali rice, white rice, glutinous rice and broken rice now kept at 173 warehouses in 35 provinces.
The department is scheduled to allow interested bidders to observe the terms of reference today, inspect the rice quality on June 6-10 and submit bid envelopes on June 15.
She said the new auction would be the biggest proposed rice sale since the National Council for Peace and Order (NCPO) took control.
The government's rice stocks reached 18.7 million tonnes through various rice pledging schemes, which bought rice from farmers at prices 40% above market rates from 2011-14, crippling exports and leading to huge stockpiles.
Since the May 2014 coup, a total of 6.12 million tonnes of rice has been sold via 15 auctions, fetching 64 billion baht.
In 2008, former commerce minister Chaiya Sasomsab put 3.1 million tonnes up for auction, followed in 2009 by a 2.6-million-tonne auction.
The most controversial auction was held in 2004 when former commerce minister Watana Muangsook approved 1.7 million tonnes of rice stock to be sold to a single private bidder, President Agri Trading Co.
Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said the new auction was timely given high market demand, but noted the amount was relatively high.
Mr Chookiat said the government's auction was unlikely to affect rice market prices, as state stocks are mostly old grains while foreign purchase orders require primarily newly harvested rice.