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.