rice sack in godownsAs per the sources, it has been quoted by Thailand’s commerce minister, Chatchai Sirikalya that China and Thailand will reportedly sign deals to purchase one million tons of white and jasmine rice, and 200,000 tons of rubber from Thailand. China will also reportedly sign a Memorandum of Understanding (MoU) with Thailand to build a 900-kilometer railway line from the Thai-Lao border to Bangkok.

Chatchai said, the rice will be sold to China at market prices. He told reporters that rice and rubber deals would be signed on December 3 or 4. She noted that the sales would be based on the current market prices, and the deliveries are expected to finish by the end of next year.

Furthermore, the two sides are reportedly working out the details of the cost of the proposed railway project and the loan details. According to china estimation the project cost at around 468 billion (around $13 billion) and has offered toShanti Agro Industries Pvt. Ltd. finance the project at 2.5% interest. However, Thailand is understood to be estimating the project cost at around 369 billion (around $10.32 billion) and is seeking a loan at 2% interest.

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