China will buy an initial consignment of 100,000 tonnes of rice from Thailand as part of a one million tonnes agreement signed in December last year.
Commerce Minister Apiradi Tantraporn said that under the government-to-government agreement the price would be negotiated separately for each sale.
She said Chinese government on Monday agreed to buy an initial 100,000 tonnes of new harvest 5% white rice. The rice would be sold in 25 kilogramme and 50kg bags at the FOB CY (container yard) price of US$399 and $394 per tonne respectively.
Delivery will be during October and November.
Mrs Apiradi said the selling prices were satisfactory when compared to the prices set by major rivals such as Vietnam and Pakistan, selling the same grade of rice at $332 and $335 a tonne respectively.
The confirmed pre-harvest export order would help boost the price farmers would get for their paddy grain.
The ministry, through Foreign Trade Department, would continue negotiating with China to complete the one million tonnes deal.
Mrs Apiradi said the ministry would continue to promote rice exports, including to the Philippines. The ministry hoped to meet the target of shipping 9.5 million tonnes of rice in 2016.
From January to August, Thailand shipped 6.06 million tonnes of rice worth 96.23 billion baht, up 2.9% year-on-year by volume and 1.4% by value, according to Thai Rice Exporters Association.