"I heard some traders are offering at under $280. It looks like some people are trying very hard to sell into Indonesia," said a Singapore-based trader with a European trading firm.

Thai 25 per cent grade, which is sought by Indonesia, was quoted at around $280 per tonne last week in Thailand as the market awaited further developments from Indonesia.

The grade went through wild price swings between $275-295 per tonne in the few past weeks because of confusion on Indonesia's procurement plans.

Another trader said there was talk that some small lots of rice had entered Indonesia, maybe through some Singapore trading firms, but there was no confirmation.

Indonesia's government-to-government deals with Thailand and Vietnam halted after Jakarta sought to change some agreed terms for payments, industry sources have said.

Meanwhile, rice prices in Indonesia have been rising and India seems hopeful of a breakthrough in exports to Indonesia, where rice production this year is expected to fall to 29.26 million tonnes from last year's 31.21 million.

Indonesia's rice imports are estimated at 4.1 million tonnes this year.

Rice crops in Indonesia and Bangladesh were hit by floods and that offered a chance for Indian rice, Anil Adlakha, executive director of the All India Rice Exporters Association (AIREA) told Reuters in an interview on Wednesday.

India is also looking at China and Japan, he said.

India produced about 82.5 million tonnes of rice and exported 2.2 million tonnes from its two rice crops in 1997/98 and expects a better crop in the 1998/99 July/June year after widespread and timely southwest monsoon rains.

"I don't think it'll be easy for them (India) to enter those markets. Thai rice is still popular in the region and there are some quality concerns over Indian rice," said one trader.

Indonesia's latest rice imports tender, scheduled for August 27, was postponed while the government evaluated the tender procedure and the status of bidders.

Officials in Indonesia have dismissed reports that the nation's rice stocks had been heavily depleted.

Indonesia said on Wednesday it had revoked commodity regulator Bulog's monopoly on wheat and sugar imports.

The government now allows private companies to import wheat flour with zero tariff.

Under an agreement signed with the International Monetary Fund in January, Bulog's monopoly on the import of basic commodities was to be revoked for all foods except rice.

"This is both good and bad for the market. It'll be a more liberalised market but at the same time, who knows if we can trust private companies in Indonesia once the government's support is not there?" said one trader