Thailand is set to sign a government-to-government deal with China next month to sell 1 million tonnes of rice, with delivery starting in December.
Commerce Minister Chatchai Sarikulya said after his return from China last week that the deal would be signed on Sept 13 or 14.
The grains, which are mainly new 5% white rice and Hom Mali fragrant rice, are part of 2 million tonnes of rice for which Thailand and China signed a memorandum of understanding last December.
The contract will be made through the China National Cereals, Oils and Foodstuffs Corporation, the giant state enterprise that oversees rice imports, as a way of ensuring transparency.
Gen Chatchai said Thai authorities would discuss further with Chinese counterparts about the proper period for the deal for the remaining 1 million tonnes to be signed.
The transaction with China is unrelated to an earlier deal for 1 million tonnes struck by the Yingluck Shinawatra government. Thailand has already delivered 600,000 tonnes as part of that deal.
The present government has vowed to dispose of 17 million tonnes of rice in state stockpiles accumulated from the previous government within two years, with 10 million tonnes to be sold this year.
Since Prime Minister Prayut Chan-o-cha took office, the Commerce Ministry has held eight bids to speed up disposal of 18 million tonnes of state stocks. It has sold 3.88 million tonnes for 40.9 billion baht.
The government now controls 14.3 million tonnes of rice, with 4.6 million categorised as low-quality grains, 1.29 million as rotten and about 8 million dubbed as Grade P, meaning its quality passes Commerce Ministry certification and it is a mix of Grades A and B.
In the first half of this year, Thailand shipped 4.457 million tonnes of rice, down by 4.7% to a value of US$2.21 billion.
Nigeria was the largest importer of Thai rice at 475,362 tonnes, up by 105% year-on-year, followed by the Philippines at 422,110 tonnes (up 255%), China at 361,106 tonnes (up 9%), South Africa at 270,291 tonnes (up 17%) and the US at 226,497 tonnes (down 1.8%).