The Department of Foreign Trade reveals that it is preparing to participate in an auction hosted by the Philippines to sell 700,000-800,000 tons of rice after both countries have signed an extension of the Memorandum of Understanding (MoU) on rice cooperation.

Director General Surasak Riengkrue said that the MoU’s duration would last for another 3-4 years; however, he said the government must proceed with the auction carefully as its interim authority is limited. He added the renewal of the MoU would provide a tremendous opportunity for Thailand to sell its rice stockpiles, pointing out that the MoU could be reconsidered when a new government was formed.

The Commerce Ministry has anticipated the Philippines would be interested in purchasing 25% white rice from Thailand. That country earlier used to import rice from Thailand, but later shifted its focus to Vietnam which offered rice at lower prices.

The Thai Rice Exporters Association echoed Mr. Surasak’s claim, saying the auction would be a good opportunity to sell the stockpiled rice. He said Thai rice is currently as competitive as that of Vietnam as its price has dropped to a range of 400 - 410 dollars per ton.

The Philippines, however, has yet to announce details of its planned auction.

Source: National News Bureau & Public Relations