Good news for farmers as rice export deals clinched
Thai rice traders are enjoying robust sales at a better price driven by higher demand in the world market, after the the country struck deals to export 324,000 tonnes of rice grain to China and the Philippines.
Up to 100,000 tonnes to be exported are a result of government-to-government (G2G) contracts between Thailand and China while the sale of another 224,000 tonnes to the Philippines followed successful bids by both the Thai state and private sectors.
All contracts were made earlier this month, Foreign Trade Department chief Adul Chotinisakorn said on Wednesday, adding the latest rice deals would be music to the ears of farmers, who have often struggled to deal with low grain prices and a surplus in rice stock.
"The huge exports in the short run will help release rice from stock rapidly," he said.
"Farmers will rack up good revenues, which is good for the rice market in the country in the long run."
The exports, set to be delivered in December and January, are expected to help the government attain its rice export target for 2018 of 11 million tonnes.
As of Nov 27, some 9.89 million tonnes had been exported this year, bringing in revenue of 161 billion baht.
Mr Adul said Thailand and China have agreed to a G2G deal with Beijing promising to buy 1 million tonnes of rice.
The latest deal to export 100,000 tonnes to China is the seventh batch in a series, he said.
The Philippines' National Food Authority, meanwhile, opened bidding for rice trading on Wednesday.
This saw the Thai government win a contract to export 80,000 tonnes.
The private sector also bagged a deal to export 140,000 tonnes to the Philippines in a bid held on Nov 20.