Thailand is in discussion with china to export 1 million tonnes Thai Rice through government to government (G-to -G) deal.This way Thailand seeks more rice sales. Thailand is working on similar contracts with other countries like Indonesia, the Philippines, Malaysia and countries in Africa and the Middle East too.
Commerce permanent secretaryof Thailand, Chutima Bunyapraphasara said the Commerce Ministry is also ready to sell state rice stocks via a general auction in early August. She said the new rice deal with China had nothing to deal with 1 million tonne Thai rice deal which was signed between previous Thai government and Chinese government
Chutima Bunyapraphasara said that under previous deal of selling 10,000,00 tonnes of Thai rice Thailand had only delieverd 100,000 tonnes of rice while remaining 900,000 tonnes are yet to follow.
“With the new harvest about to be supplied to the market, we are now closely working with the private sector to beef up state rice sales and exports,” said Ms Chutima.
“We have set a target of shipping 3-4 million tonnes of state rice stocks and project the country’s overall rice exports will exceed 8 million tonnes this year including those handled by exporters.”
However, Ms Chutima said that the government’s rice sales would be delayed during a period of massive new supplies to curb any impact on market.
The millitary regime announced that the they will start the sale of state rice stock in August through four channels: general auctions, G-to-G deals, direct sales and the Agricultural Futures Exchange of Thailand. Through this sale they are expecting to move an average of 500,000 tonnes a month and dispose of the existing 18-million-tonne surplus within three years .
In case of any questioning on quality of rice being sold the buyers can negotiate with authorities.
The previous government rice pledging scheme,which purchased rice at 40-50% above market prices and had let government at loss.
This scheme costs 500 billion baht to the country and also found many officials guilty in case of corruption.