The Foreign Trade Department will seek to export 200,000 tonnes of parboiled rice to Bangladesh under a government-to-government deal, but industry players are suspicious about conditions that seem to benefit only a few large exporters.

An industry source said the government wants the 5% parboiled rice delivered to Bangladesh next month.
The purchase conditions stipulate exporters submitting an offering price must have a history of shipping an average of 200,000 tonnes of parboiled rice annually from 2008-10. They must also have a record of exporting rice to Bangladesh during that period.

Offers must be for at least 50,000 tonnes, with the first shipment to be made before April 16.

The source said these requirements seem to be designed for certain major exporters, as even those with a track record of 200,000 tonnes annually still could not participate if nothing was exported to Bangladesh.

The date of delivery is another sticking point, as to meet the requirement exporters would have had to known about the deal prior to the announcement so they could prepare, said the source.

Four exporters will likely be qualified to tender their offers on Thursday for a decision to be made on Friday - Asia Golden Rice Co, Capital Rice Co, Chaiyaporn Rice Co and Kamolkij Co.

Pranee Siriphand, deputy director-general of the Foreign Trade Department, said these conditions were set because the Bangladeshi government wants reputable exporters with experience to supply the rice.

It wants the first shipment to leave Thailand before April 16 and the entire lot exported by May 11.

Reliable exporters with experience in this market are requested because Chittagong will be the sole port of delivery, and customs clearance there is time-consuming, said Ms Pranee.

She said sometimes buying governments are also worried about their domestic politics and want delivery rushed.

Global rice prices have not moved upward recently, as Vietnamese output is keeping them down. The average export price is now US$507 a tonne.

Meanwhile, the Agricultural Futures Exchange of Thailand will launch its latest futures contract for 5% white rice, free on board (FOB), on April 29.

It will be a bigger contract with 50-tonne trading units and an FOB delivery term, which is appropriate to rice exports under current market conditions.

Source: Bangkok Post