Thai confirms rice sale to RI

Thai confirms rice sale to RI

Dow Jones, Bangkok

Thai Prime Minister Thaksin Shinawatra said in a government
radio broadcast Saturday that Indonesia has purchased 500,000
metric tons of Thai rice, the Matichon Thai language newspaper
reported in its Sunday edition.

Indonesia's National Logistics Agency, or Bulog, bought the
rice from Thai state agency the Marketing Organization for
Farmers, or MOF, for delivery from November this year to August
next year, said Thaksin.

Thaksin's confirmation of the sale came after a Bulog
official's earlier comments that no decision had been made to
accept Thailand's offer of 300,000 tons of rice, in addition to
the 200,000 tons agreed on earlier.

Thaksin said delivery will be split into 50,000 tons of rice
each month.

Earlier, an official from President Agri Trading Co. said if
they were unable to get the rice on time from Thai farmers for
delivery to Indonesia, Thailand could postpone shipment for one
or two months.

President Agri Trading is the exporter contracted to supply
the 500,000 tons of rice to Indonesia.

The first 200,000 tons will be in exchange for Indonesian
goods, said Thaksin. As reported earlier, these goods include
cargo train wagons, ammonia for fertilizer production and
aircraft for agricultural purposes.

The other 300,000 tons of rice will be sold to Indonesia under
normal trade payment by opening a letter of credit, said Thaksin.

Thaksin said the 500,000 tons of rice can be considered a big
purchase from Indonesia. He added that he understands from the
deputy prime minister that China will also buy 500,000 tons of
Thai rice this year.

Thailand is the world's largest rice exporter. It exported a
record high of nearly 7.55 million tons in 2001.