Johannesburg: Thailand has clinched several deals to sell 765,000 tonnes of rice worth US$313 million to African countries.
Commerce Minister Chatchai Sarikulya said during a five-day visit to South Africa ending tomorrow that Thai exporters had signed 11 memorandums of understanding with African importers for the rice, worth 10.9 billion baht in Thai currency.
South Africa will take 610,500 tonnes and other African countries the rest.
All grains will be premium parboiled rice scheduled for delivery this year and next.
Apart from the rice deals, Gen Chatchai said Thai exporters from other sectors including processed foods, auto parts and fashion and lifestyle products had secured purchase agreements worth a combined $20 million.
Charoen Laothammatas, president of the Thai Rice Exporters Association (TREA), said the parboiled rice fetched a relatively high price at $450 a tonne compared with $430 a tonne going in the market.
South Africa was one of the top five rice importers from Thailand in the first half of this year, importing 270,291 tonnes of Thai grains, up by 17.1% year-on-year.
Nigeria was the largest importer in the period at 475,362 tonnes, up by 106% year-on-year, followed by the Philippines at 422,110 tonnes, up by 255%, and China at 361,106 tonnes, up by 9.8%.
At the same time, the US imported 226,497 tonnes, down by 1.8% year-on-year.
In the first six months, Thailand exported a total of 4.46 million tonnes of rice, down by 4.7% year-on-year, worth 72.1 billion baht, down by 5.5%.
The TREA forecasts Thailand's rice shipments will total 9.5 million tonnes worth US$4.77 billion this year.
It also expected the widespread drought will trim Thai rice production by 15-20% to 35 million tonnes of paddy or 18-19 million tonnes of milled rice.
However, Mr Charoen said despite drought hurting rice production worldwide, prices had yet to increase much because of existing massive stocks held by Thailand and India.
Thailand's rice stocks are estimated at 15 million tonnes, while India holds about 28 million tonnes.
The slower-than-expected global economic recovery has also negatively affected the purchasing power of potential rice buyers, Mr Charoen added.
TREA honorary president Vichai Sriprasert said the industry was also concerned about export prospects to Nigeria, whose main revenue derives from oil exports.
Lower revenue may reduce the Thai rice shipments to that African nation, he said.