Thailand looking to sell RI 100,000 tons of rice

Thailand looking to sell RI 100,000 tons of rice

BANGKOK (Reuters): Thailand will pursue talks with Indonesia to sell only 100,000 tons of rice under its government-to- government deal and not 500,000 tons as requested by Indonesia, a senior commerce ministry official said yesterday.

Pracha Charutrakulchai, head of Thailand's foreign trade department, told reporters that the government would suggest that Indonesia secure the remaining 400,000 tons from the private sector.

Indonesia is seeking to defer the payment for three years and will hold talks with Thai authorities between Aug. 5-Aug. 9 on the matter.

"That is the amount we are willing to take because we want to reduce risks. In the past four or five years, we ran a loss selling rice under the government-to-government deal," Pracha said.

"This is because the rice prices have been on the rise. The government agreed to sell at certain prices but had to pay much more to cover the obligation," he said.

Pracha said the shipment of the rice would be between September and January.

Another official at the commerce ministry said the government would ask Indonesia to talk with Thai Rice Exporters Association for the purchase of 400,000 tons.

"I'm sure the association wants to sell to Indonesia but in what quantity will depend on various conditions," the official said.

"They will not take deferred payment and will assess the risks there before committing to any deal. The letter of credit will be a major issue," the official said.

Thailand, the world's top rice exporter, exported around 3.8 million tons of rice during the first seven months of this year compared with 2.77 million tons during the same period last year.