Nine countries want to purchase rice under government-to-government (G-to-G) contracts with Thailand, a source at the National Rice Policy Committee said last week.

Combined volume from those nine countries could be more than 1 million tonnes.

However, the government has not yet finalised any decision to sell rice to any country. Countries that want to import Thai rice include Malaysia, the Philippines, Iran, Iraq, India and countries in Africa.

The source said the Foreign Trade Department had reported to Prime Minister Abhisit Vejjajiva during the committee's latest meeting that many countries were interested in using G-to-G agreements.

The ministry is waiting for details from the committee concerning which countries might be involved and at what prices.

Releasing rice via G-to-G contract is one of three options open to the ministry to release the government's stockpiles. Other options are to sell rice via bidding and through the Agricultural Futures Exchange of Thailand (Afet).

At present, Thailand has about 4.8 million tonnes of rice in government stockpiles.

The ministry last week cancelled the bidding for 375,000 tonnes, as it was not satisfied with the offered prices. The ministry is planning to open new bidding for about 300,000 tonnes of rice this week.

The ministry is targeted to release up to 1 million tonnes of rice via G-to-G contracts this year. Last year, the government did not release any rice via such contracts.

According to the Foreign Trade Department, Thailand released a total of 653,282 tonnes of rice in 2007 and 73,400 tonnes in 2008 under G-to-G contracts.

Pramote Vanichanont, president of the Thai Rice Millers Association, said the government should consider selling rice via Afet and G-to-G contracts rather than bidding, as the first two avenues do not affect the market price.

"Selling rice under the G-to-G contracts, the government does not have to be concerned with the trading price, as the price will not be a benchmark for the market rice trade," said Pramote.

He suggested that instead of releasing rice via bidding, which can easily pave the way for corruption and directly impact the market price, the government should gradually release rice to the futures market.

About 300,000 tonnes can be traded on Afet monthly, he said.

Source: The Nation