The agriculture ministry Thursday decided to ease a key bidding rule for government-stockpiled rice that requires a buyback within a year, in a bid to promote the circulation of such rice in the market.
The government has held three auctions to sell stockpiled rice in the hopes of curbing soaring prices. But the average retail price is still more than double that a year earlier.
Under the current rules, the government will buy back the same quality and quantity of rice sold to the buyers within a year. Due to the small window, distributors are said to be refraining from releasing rice into the market as they expect prices to remain high.
By extending the limit to five years, the government aims to secure a bigger pool of bidders, officials said.
The government has released 312,296 tons of stockpiled rice over three auctions. It plans to release 100,000 tons per month in auctions between May and July.
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