Deal to sell rice, rubber to China
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Thailand and China today signed a memorandum of understanding on agricultural products, which involves the sale of rice and rubber to Chinese companies.
The MoU for agricultural crops was signed on the same day that the Transport Ministry and China signed an MoU to confirm their commitment in a joint train project from Bangkok to Nong Khai.
Representing Thailand in the signing ceremony was Transport Minister Arkhom Termpittayapaisith.
On December 19, there will be the foundation laying stone ceremony for the train project's control centre.
Under the agricultural MoU, the Commerce Ministry will sell 1 million tonnes of newly-harvested rice to China.
Commerce Minister Apiradi Tantraporn said the rice would be sold to COFCO, or China National Cereals, Oils and Foodstuffs Corporation - one of China's state-owned food processing holding companies.
In a statement, the Commerce Ministry also said that the Agriculture and Agricultural Cooperatives Ministry will sell 200,000 tonnes of rubber to Sinochem, a Chinese conglomerate primarily engaged in the production and trading of chemicals and fertilizer and exploration and production of oil.
Since the coup in 2014, Thailand has clinched government-to-government rice deals with China, Indonesia and the Philippines, the Commerce Ministry said. Including the new deal signed today, G-to-G rice deals with China involved 3.4 million tonnes of rice, valued totally Bt50 billion.
Apiradi also said the Thai government also plans to strike similar deals with countries in Africa and the Middle.
She explained that under the new MoU signed today, Thailand will deliver 100,000 tonnes of rice per month at the price that will be in line with global levels at the time of delivery.
"The signing sends a positive signal that China is interested in buying more rice from the Thai government," Apiradi said.
Under a deal signed by the previous government, the Thai government has delivered 80 per cent of 1 million tonnes to China. Delivery under the new deal is expected to start early 2016.
Apiradi added that the Commerce Ministry's team and COFCO would discuss details of the deal tomorrow.
