Bids in Thailand’s first tender to sell rice from national stocks in nearly 10 months could be well below the amount it paid for the grain under a controversial intervention scheme, forcing the government to take big losses if it decides to sell.

World prices have fallen due to expected bumper crops and high stockpiles, with Thai sales piling even more pressure on the market.

Traders also warned that interest in the first tender after a considerable hiatus would likely be limited, with some firms waiting to see how transparent the sale would be and what prices the government would accept.