Singapore signs rice deal

Singapore signs rice deal

SINGAPORE (AFP): Singapore and Thailand will soon seal a landmark agreement that will ensure the land-starved island state priority in obtaining a rice supplies from Thailand in the event of an emergency, the Straits Times reported Tuesday.

Chachaval Sukitjavanich, deputy permanent secretary of Thailand's Commerce Ministry, said minor points in the memorandum of understanding were being ironed out before it was submitted to Thailand's Rice Policy Committee for approval.

"The agreement opens a special channel for the Singapore Government which will have priority over other foreign buyers to procure rice from Thailand during shortage arising from unforeseen circumstances or emergency conditions such as natural disasters," Chachaval told the daily.

Thailand, one of the world's major rice exporters, produces 20 million tons of rice each year, the report said.

Tiny Singapore, which imports most of its food needs, acquires most of its rice from Thailand. In 1997, 87 percent or S$196 million (US$113.29 million) worth of Singapore's total rice imports came from Thailand.