Thailand has confirmed its part in a deal to provide 2 million tones of its stockpiled rice to China after improved relation between two nations during 5th Greater Mekong Sub region (GMS) summit organized for 19­20 December 2014.

Thai Commerce Minister, General Chatchai Sarikulya has told about the details of the 2 million rice export to China in the year 2015-16.The official agreement between the two nations is expected to sign today (12 March, 2015) after the visit of Chinese Premier Li Keqiang, the famous foreign leader to trip the country on May 22 to a two-day regional meeting on the Mekong River held in Bangkok.

After Thailand will successfully deliver the delivery of 1 million tones of Thai rice to China under G-to –G deal between the two countries.

Thailand had already shipped 300,000 of the 1 million tonnes and is scheduled to ship the rest by next July. For the remaining Thailand would urge China to import more jasmine rice as it is a value added product for Thailand.

Thai Commerce Minister has disclosed that of 2 million tones, one million tones of rice will be sourced from the state stockpile while the other one million will be from new output.

Thailand currently has about 17.8 million tons of rice in its stockpiles. The Thai Prime Minister was cited as speaking that it could take 3 years to unload all the stocks. He noticed that the government is scheduling to sell the stocks slowly to shirk price falls. According to a stock audit report of the remaining rice stocks, 2.35 million tons are of worthy quality; 14.4 million tons are inferior but quality can be enhanced; 694,999 tons are of poor quality and 390,000 tons are misplaced.

Meanwhile, the Thai Prime Minister implicit at filing civil and criminal law suits against previous governments’ rice pledging schemes, which led to growing losses of around 680 billion baht to the exchequer. He noticed that those guilty for losses would be sued for compensation.

Apart from Rice, China has also agreed to buy 200,000 tonnes of rubber from Thailand.

The announcement came as Thailand continues to thrash out details of rail cooperation with China. Last December, the two countries agreed to jointly develop an 873 km dual-track standard gauge rail that will eventually provide a crucial trade link.