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.