According to local sources, Thailand has signed a memorandum of understanding with China to export two million tons of rice next year in Bangkok. Greater Mekong Sub­region (GMS) summit organized for 19­20 December 2014.

Particulars of the MOU would be reviewed in the meeting. The Chinese PM also confirmed the signing of the MOU. Last month, the Thai Commerce Minister mentioned at a government ­to ­government (G2G) deal with China to export 2 million tons of rice next year.

The countries signed a MOU under which China will build two dual track rail lines capturing a total of 867 kilometers. The two MOUs are likely to improve trade associations between China and Thailand.

According to data from Thai Rice Exporters Association (TREA). Thailand is planning to haste the delivery procedure in the prevailing one­million tons G2G contract with China. Thailand so far transported 300,000 tons to China under the current contract and is planned to export outstanding 700,000 tons by July 2015. Thailand exported about 277,547 tons of rice to China in 2013, up around 94% from about 143,082 tons exported in 2012.

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.