Thai rice exporters say there has been a good sign for 2011 rice business growth, as Indonesia has promised to buy a huge amount of rice from Thailand.

The President of the Rice Exporters of Thailand Korbsook Iamsuri stated that the first quarter of 2011 for Thai rice exporters has seen success thanks to the Indonesian government's promise to purchase 820,000 tons of Thai rice.

The volume of rice the National Logistics Agency (Bulog) bought from Thai exporters for prompt shipment far surpassed the 170,000 to 200,000 tons announced earlier for the batch.

Still, rice experts have warned that the overall 2011 rice business may still face scores of obstacles as well as market fluctuation and global economic instability.

Traders and industry officials said the deal surprised the market, as it was bigger than expected and it has automatically pushed the price of domestic milled rice higher.

Officials added that the staple food will be sold ON AVERAGE at 510 U.S. dollars a ton.

Kopsuk explained that more than 10 dealers, such as Asian Golden Right and Chaiporn, have won the deals.

However, she noted that market prices will not be tremendously affected by the Indonesian government's massive deal, as the Thai government released four million tons of rice in late 2010.

Source: TANN