THE COMMERCE MINISTRY expects to sell more rice to China and other countries next year after clinching a contract to supply about 3 million tonnes to China this year.
"The government should be able to release more rice from stockpiles next year. Now less than 7 million tonnes remains in warehouses from a total of 10 million tonnes," Commerce Minister Niwatthumrong Boonsongpaisan said yesterday.
The ministry's Foreign Trade Department signed a government-to-government contract with Chinese state-owned Beijing Great Northern Wilderness Rice Industry, a subsidiary of Heilongjiang province's Beidahuang, to supply 1.2 million tonnes of 5-per-cent white rice over two years and 90,000 tonnes of tapioca to China.
Niwatthumrong said the government was negotiating more rice contracts with China and other countries.
The ministry did not disclose the value of the contract with China, saying the price was in line with the market price and should not create a huge loss for the government.
China will choose its own rice quality improving and shipping company under an ex-warehouse contract, which excludes shipping costs. About 50,000 tonnes of rice will be shipped to that country each quarter. For this year, about 15,000 tonnes will be exported to China.
This is the third contract with China this year. The first was signed by the Thai Rice Exporters Association and China's state-owned Cofco (China National Cereals, Oils and Foodstuffs Corporation) for 1 million tonnes over five years. The next contract was a G2G deal between the Foreign Trade Department and Cofco, also for 1 million tonnes over five years.
Niwatthumrong said China had high demand for foreign rice and other agricultural products as it wanted to supply both its domestic market and allied countries.
The ministry is scheduled to sell 131,849 tonnes on the Agricultural Futures Exchange of Thailand on Monday. This will include 114,000 tonnes of 5-per-cent white rice and 17,000 tonnes of 100-per-cent jasmine rice.
Deputy Commerce Minister Yanyong Phuangrach said the government would gradually release rice to |the futures
Source: The Nation
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