The rice industry was taken by surprise yesterday by Commerce Minister Boonsong Teriyapirom's announcement that his ministry has concluded six export deals for a combined 7.33 million tonnes of rice.

The minister said all the deals involved government-to-government (G-to-G) transactions with Indonesia, the Philippines, China and Ivory Coast.

He declined to give details of the transactions, particularly prices or how much each buyer purchased, saying vaguely only that deliveries have already started and will be completed this year.

But local rice exporters expressed doubt about the sales and deliveries, saying they know only of Ivory Coast agreeing to purchase 240,000 tonnes of rice in July.

Mr Boonsong has worked hard to sell rice in recent months, but a source said as far as could be determined, the minister was able to clinch memorandums of understanding to sell 1 million tonnes of rice each to Indonesia, the Philippines and Bangladesh plus 200,000 tonnes to Guinea.

"We're not aware of any active rice loadings at the ports if what the government says is true, that it has sold most its record inventory and already started shipping it," said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association.

"Export of more than 100,000 tonnes of rice would at least have a shipment booking, which cannot be concealed, and due to the current low export volume, we'd know about any large exports such as those announced by the minister."

He urged the government to disclose at least the amount of rice sold under the G-to-G contracts to each buyer and the amount due for delivery this year and next, like it did with the earlier Ivory Coast deal.

"Exporters are concerned about the selling prices, as reports are the government itself has been trying to sell rice to Indonesia under G-to-G contracts at only $500 a tonne, which is below the present market price of $560-580," said Mr Chookiat.

"If the selling price turns out to be as low as $450 a tonne, that will mean a massive loss for the government and the destruction of Thailand's rice export market."

As of last Friday, year-to-date rice export volume had fallen by 45% year-on-year to 4.5 million tonnes.

But Mr Boonsong is confident Thailand's rice exports will reach 8.5 million tonnes this year.

The minister said the government's stockpile is set to drop to only 4.1 million tonnes from 12.6 million tonnes before.

These grains will be held as food security for the country, although occasional sales can still occur, said Mr Boonsong.

"We'll continue our policy of pledging each grain of rice, as we believe global demand will be strong," he said.

Source: Bangkok Post