1.29m tonnes of spoiled rice to be auctioned
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1.29m tonnes of spoiled rice to be auctioned

Rotten grain to be sold for ethanol production

A worker tries to lift a sack of spoiled rice stored at a warehouse in Chachoengsao province in July 2014. (Bangkok Post file photo)
A worker tries to lift a sack of spoiled rice stored at a warehouse in Chachoengsao province in July 2014. (Bangkok Post file photo)

The Commerce Ministry plans to auction 1.29 million tonnes of inedible rice for industrial use at the end of July, to reduce the ageing government stockpile accumulated under the previous government's rice pledging scheme.

Commerce Minister Chatchai Sarikulya said an inventory made on June 30 showed the ministry had a total of 15.11 million tonnes of rice remaining in the stockpile after recent sales, in three categories.

The first group comprises 9.15 million tonnes of edible rice --  1.82 million tonnes of grade A and B rice, and 7.33 million tonnes of grade A and B rice mixed with grade C rice.

The second group of 5.89 million tonnes of grade C rice comprises 4.6 million tonnes of degradable rice and 1.29 million tonnes of inedible rice which is now crumbling to powder.

The third category consists of about 70,000 tonnes of rice which the ministry is still examining and grading for quality. 

Gen Chatchat said the ministry plans offer 1.29 million tonnes of powdery rice at two or three auctions, to meet the needs of buyers. The Industry Ministry had advised that the ethanol industry was unable to accept the whole amount in one go. 

He said the ministry will not limit bidding to the bio-fuel industry. Other sectors could also make offers.

Gen Chatchai admitted that the sale of the total 18 million tonnes of rice that was in the government stockpile could mean a loss of over 100 billion baht.

He brushed aside earlier reports by online media that the price of spoiled rice could be as low as one baht a kilogramme. He said the price would be considered later by a working group.

Commerce permanent secretary Chutima Bunyapraphasara said the working group would set the criteria and price for the release of inedible rice to the industrial sector, to ensure transparency.

She said the ministry will thoroughly examine the quality of the 4.6 million tonnes of grade C rice to find out whether it is contaminated with fungus or not. If there is contamination it could not be sold as food for  people or animals, so it would be sold to ethanol producers or biomass power plants.

If there is no contamination, the ministry would improve the quality, or release it to the stock feed industry. 

Ms Chutima said after selling the rice to industrial users, the ministry would monitor GPS systems installed in the trucks to ensure the grain is delivered to the designated destination at the estimated time, and not diverted elsewhere.

The rice will be weighed before departing the warehouse, and again at the destination. Buyers must also inform the ministry what the rice will be used for. 

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