The benchmark Thai rice price fell to US$550 (HK$4,290) per tonne, barely half the record high struck in April, as the government added to supply with a tender for 3.1 million tonnes of rice from its stockpile.

The government wants to clear space in its warehouses for rice it intends to buy under a price support scheme for the new crop, which is being harvested from November, but traders and industry officials said initial demand was low.

Bids had come in for only about 1 million tonnes from some 50 exporters, they said, and the government was reluctant to sell because the bids were low.

REUTERS