Last May, Deputy Prime Minister and Commerce Minister Phumtham Wechayachai gave reporters a behind-the-scenes look at the aging rice stocks in Surin (Photo courtesy of the Ministry of Commerce). With the government’s focus on winding down leftover rice from the Yingluck Shinawatra administration’s rice-pledging scheme, Phumtham announced plans to auction off 15,000 tonnes of this surplus. This initiative aims to clear out these reserves, according to rising demand and market needs.
The Public Warehouse Organization (PWO) has received marching orders to hasten negotiations with the three final bidders. Initially, three other companies, including the top bidder, were disqualified due to connections with entities embroiled in legal troubles from previous PWO auctions. These disqualified participants, namely V8 Intertrading Co, Thanasan Rice Co, and SSMR Karnkaset Plc, had indirect links to entities that botched earlier auctions involving cassava and rice, though they hadn’t personally caused direct harm at the time, as per insider information.
Riding on this undercurrent of complications, the PWO is now focused on brokering a more competitive deal with the remaining bidders. These companies submitted offers that trailed just behind the disqualified winners. Minister Phumtham pointed out that the government aims to award the sale rights to the highest bidders, ensuring a smooth and beneficial resolution for all parties involved. Essentially, everyone is hopeful that this auction will fetch a commendable price for the rice. However, if these negotiations falter, the entire auction may be called off, and a fresh bid will be announced. No half-measures here; it’s all or nothing.
Let’s break it down. For the 11,656 tonnes stored meticulously at the Kittichai warehouse, B N K Agriculture 2024 Co stepped up with a notable offer of around 16 baht per kilogramme. Hot on their heels was Sup Saeng Thong Rice Co, coming in at 15.61 baht. Meanwhile, the smaller stockpile of 3,356 tonnes nestled at the Poonpon Trading Co warehouse saw Sahatan Co putting forth a competitive bid of 18.69 baht per kilogramme, with B N K Agriculture delivering a consistent offer of 16 baht.
This auction has already grabbed eyeballs and generated buzzworthy anticipation. With such high stakes hinging on these grains of rice, it seems fitting to view it as a dramafest in the world of agriculture and commerce. Everyone from farmers to economists is watching eagerly as the final hammer inches closer to striking.
This whole auction process isn’t just about selling rice; it’s a grand play of strategy, negotiation, and high-end dealings that could potentially reshape the standing reserves of rice in the country. It’s quintessential economic theatre, with each stakeholder striving to make the most of the moment.
Stay tuned because, for better or worse, this auction’s outcome is set to be a headline-maker and a topic of countless dinner table debates. The journey of these 15,000 tonnes of rice from the storages in Surin to the hands of bullish bidders is nothing short of a high-stakes agricultural odyssey. Whether it culminates in a successful sale or a dramatic restart, one thing’s for sure – this rice auction saga is gripping the entire nation’s attention.
Why is Phumtham even bothering with this auction? Just get rid of the rice quickly and move on.
Anna65, you can’t just ‘get rid’ of 15,000 tonnes of rice. It requires careful management and a proper auction to ensure the government gets the best value.
Sure, but isn’t this just wasting time? The longer it sits there, the worse it gets!
Both of you have valid points, but maximizing the value while not letting the rice degrade further is a challenging balance to strike.
Anna65, think about the farmers. A controlled auction helps stabilize prices and supports local agriculture rather than flooding the market.
This auction should have happened years ago! The delay has been costly for taxpayers.
Policy_Wonk, it’s easy to say in hindsight. The political complexities can’t be ignored in these decisions.
I agree with Samantha L. The legal and market issues are complex. There’s no simple solution when billions are involved.
Samantha L., Analyst_01, true, but efficiency in handling surplus should still be a government priority. We need reforms.
Why aren’t we considering more sustainable approaches for these rice reserves instead of just auctioning them off?
GreenThumb, sustainability is key, but we also need to think about immediate economic needs and storage costs.
What if the negotiations fall through? We can’t just keep postponing these auctions.
Kimberly V., if the talks fail, they will indeed need a fresh bid, which adds more delays and costs. It’s a risky situation.
Why not have stricter vetting from the beginning to avoid disqualifications and delays?
This auction is just a spectacle. It’s the same song and dance every time.
grower134, there’s truth to that. But it’s also a necessary process for transparency and ensuring fair play among bidders.
The ‘spectacle’ as you call it is vital to maintain public trust in government dealings.
Marcelo, EcoWarrior, I get it, but sometimes it feels like they’re just dragging it out for show.
Is anyone else worried about how this affects the farmers directly?
Sophia92, absolutely. Many small farmers depend on these auction outcomes. A lot is riding on it.
FarmerJoe, but isn’t the delay also hurting them by keeping prices unstable?
Yes, Mark T. That’s exactly my point. Stability is crucial for their planning and livelihood.
What’s the point of negotiation if the top bidders are already disqualified?
TraderX, they need to ensure the remaining bidders can meet the criteria and provide a fair price.
Isn’t the government losing money by not selling immediately?
Gemini, sometimes waiting and negotiating ensures a higher return compared to a rushed sale.
What measures are being taken to ensure this rice is not wasted while negotiations are ongoing?
Phumtham is doing the best he can with a difficult situation. Criticizing doesn’t help.
Auctioning this rice is complicated, but necessary. It will be interesting to see how the final numbers stack up.