Four rice exporters tendered bids yesterday to sell 200,000 tonnes of 5% parboiled rice to Bangladesh under a government-to-government deal.

After examining offers and documents, the Foreign Trade Department selected two qualified bidders and it will seek approval from the Commerce Minister before awarding the contract.

The bidders comprised Asia Golden Rice Co, Capital Rice Co, Chaiyaporn Rice Co and Kamolkij Co.

Winners are subject to ship parboiled rice on behalf of the Thai government to Bangladesh within 30 days of the bid, with the first shipment required to reach Chittagong port by April 16.

Manat Soiploy, director-general of the Foreign Trade Department, expects more G-to-G rice orders in the future, considering the demands of Indonesia, the Philippines, and Middle East countries.

Korbsook Iamsuri, president of the Thai Rice Exporters Association, forecasts the deal will revive the parboiled rice market, which has been quiet due to low demand from Nigeria, a major importer that normally buys over 1 million tonnes annually from Thailand.

She said competition in the Nigerian market has been increasing as Brazil and Uruguay offer lower prices. They offer about US$430-450 a tonne, compared with $500-510 for Thai rice.

The market has reacted strongly, with prices increasing to 1,400 baht a 100kg sack this week, up from 1,320 baht two weeks ago. Floods and unusual cold weather last month were also expected to result in higher prices.

The association estimated Thailand would export at least 2.5 million tonnes of parboiled rice this year.

Mr Manat projected the rice sale will drive Thailand's parboiled rice exports this year to 4.5 million tonnes, up from 3 million tonnes in 2010, pushing total exports to 9.5 million tonnes.

He also expects strong export prices this year, especially for parboiled rice, which could rise to $600 a tonne in the near future, up from $578 at present.

Source: Bangkok Post