Philippine rice deal hailed

The government remains optimistic about state rice sales despite warnings from exporters that the planned auctions could hit a snag as demand ebbs for costly Thai grains.

According to Commerce Minister Chatchai Sarikulya, the government is still actively engaged in talks with several potential buyers and recently secured a government-to-government (G-to-G) contract to sell 200,000 tonnes of rice to the Philippines.

Of the total, 100,000 tonnes is 15% white rice and the rest is 25% white rice.

In late February the Philippines called an auction to buy 500,000 tonnes of new rice — 250,000 tonnes each of 15% white rice and 25% white rice.

The Foreign Trade Department offered to sell 100,000 tonnes, and Manila agreed to the deal.

Vietnam won a deal t o sell t he remaining 300,000 tonnes. Delivery is scheduled between March and April this year.

Mr Chatchai said the latest contract was a good sign after the government last year won a contract for the first time in a decade to sell 300,000 tonnes of rice to the Philippines.

The government is committed to selling as much rice as possible via G-to-G contracts.

As part of the government’s G-to-G efforts, Thailand signed a memorandum of understanding with China last December to sell 2 million tonnes of Thai rice, consisting of 1 million tonnes each of old and new grains.

Officials are now trying their best to wrap up talks so that the delivery of the agreed-upon 2 million tonnes can take place this year.

The transaction with China is unrelated to an earlier deal for 1 million tonnes struck by the Yingluck Shinawatra government.

Thailand has delivered 300,000 tonnes to China as part of the earlier deal, with 700,000 to follow.

Charoen Laothammatas, president of the Thai Rice Exporters Association, hailed the government’s achievement of selling state rice to the Philippines, saying the deal would at least help stimulate the oversupplied rice market.