The government hopes to clear 4.2 million tonnes of its rice stocks by the end of this year, as several countries have shown interests in buying Thai rice in light of natural disasters.

The government has already sold about 1.6 million tonnes of milled rice from the stocks to Thai private companies and expects to sell another one million tonnes of milled rice to Nigeria during Deputy Prime Minister Trairong Suwannakhiri's visit to Nigeria and Senegal between Sept 26 and Oct 4, according to Niphond Wongtra-ngan, adviser to Dr Trairong.

"Nigeria has sent a letter informing its intent to buy about one million tonnes of 5% white rice, offering acceptable prices not much lower than market prices," said Mr Niphond. "Senegal also told us that it wants to buy 200,000 tonnes of broken Thai Hom Mali rice, but we recommended them to buy 25% white rice which we have in the stocks instead."

According to Mr Niphond, China is also demanding one million tonnes of 5% white rice, while the drought which ravaged Russia's wheat production and flooding in Pakistan are expected to raise rice demands from Thailand.

Meanwhile, the Bank for Agriculture and Agricultural Cooperatives lans to set aside about 32 billion baht to support the government's paddy price insurance scheme for the 2010/2011 main crop.

It expects over 3.5 million farmers would participate in the price insurance scheme.

The insurance prices for paddy of not over 15% moisture for the 2010/2011 season were set at 15,300 baht a tonne for Hom Mali paddy, 14,300 baht for provincial Hom Mali paddy, 11,000 baht per tonne of Pathum Thani 1 and 10,000 baht for white paddy, and 9,500 baht for glutinous paddy.

Registration for farmers in the North, Northeast and the Central part as well as Chumphon province is set at June 1 to Nov 30. Southern farmers are required to register during July 16 this year to March 31, 2011.

Source: Bangkok Post