The Commerce Ministry aims to release another 6 million to 7 million tonnes of rice this year to reduce its stockpiles under its continuing price-pledging policy.

As a result, the government is confident that Thailand will not face a loss greater than Bt80 billion under the rice-pledging programme.

 Commerce Minister Boonsong Teriyapirom said the planned release of stocks would be for both domestic supply and export under government-to-government (G2G) contracts.

 "Many countries are interested in purchasing rice from Thailand under G2G, such as Nigeria and South Africa. The ministry will set up missions to negotiate rice-trading contracts in the Africa market around midyear," Boonsong said.

 Last year, Thailand committed to sell a total of 7.32 million tonnes under G2G deals.

 The ministry will also release rice to Thai rice traders and private foreign importers under direct contracts. It is considering the volumes to release and in what period to ensure minimum impact on the market price of rice, Boonsong said.

 As the government is able to continue to release rice from the stockpiles, he said, the country should be able to get some return the total outlay of Bt410 billion during two years of the pledging programme.

 Since last year, the Foreign Trade Department has been able to return Bt113 billion to the Finance Ministry. Boonsong said Thailand should not face losses in excess of Bt80 billion annually if the government continues the pledging policy while gradually releasing rice from the stockpiles.

Source: The Nation