New rice deal with China nears reality
The government is expected to sign a deal soon to sell an additional 1 million tonnes of rice to China.
The move comes after that country signed rice and rubber purchase deals with Thailand on Thursday as part of a Thai-Sino railway development agreement.
Commerce Minister Apiradi Tantraporn yesterday said Thai officials were in talks with their Chinese counterparts on the type of rice and prices.
In any case, prices will reflect world market rates, she said.
On Thursday, the Commerce Ministry signed a deal to sell 1 million tonnes of rice to the China National Cereals, Oils and Foodstuffs Corporation, a Chinese state-owned food conglomerate.
The rice delivery will amount to 100,000 tonnes a month starting early next year.
Thursday’s deal was part of a 2-million-tonne lot for which Thailand and China signed a memorandum of understanding last December.
The Rubber Authority of Thailand, meanwhile, signed a deal this week to sell 200,000 tonnes of rubber to Sinochem Group, a conglomerate representing the Chinese government.
The deal was agreed despite earlier reports of hiccups in the negotiations over China’s rubber purchase.
A framework for cooperation on rail development was also signed by the two governments.
The rail routes are Nong Khai-Nakhon Ratchasima-Kaeng Khoi and BangkokKaeng Khoi-Map Ta Phut.
Thailand is in the process of delivering the remaining 100,000 tonnes of rice to China under an earlier deal for 1 million tonnes struck by the Yingluck Shinawatra government.
Mrs Apiradi said Thai officials were pursuing rice deals with many countries on a government-to-government basis including Iran.
Exporters expect rice prices to rise by 10-15% in next year’s first quarter, with El Nino shaving global production and spurring importers to amass reserves.
Big importers such as the Philippines, Indonesia and Middle East countries are increasingly concerned about the effect of the prolonged dry spell, said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association.
The industry veteran said dry weather would halve Thailand’s off-season output to an estimated 4 million tonnes of paddy.