Thailand signs agreement to sell 1 million tons of rice per year to China

0
482

BANGKOK, 6 November 2013 Thailand has reached agreement with the Chinese government to sell 1 million tons of rice per year to the latter, with delivery for the first year of sales to commence in December. 

According to Commerce Minister Niwatthamrong Bunsongphaisan, the two countries have signed agreements to collaboratively undertake studies on the development of the Bangkok-Nakhon Ratchasima-Nong Khai rail line in exchange for Thai agricultural produce. Under the deal, 50% of the costs of the high-speed rail line will be paid to China in the form of farm produce, and the remaining 50% will be in cash. The agricultural produce will be based on the global reference prices. However, he said this agreement was by no means a construction contract.

The Cabinet on Tuesday approved the draft of the agreement to sell 1 million tons of rice to China each year, based on the price in the global market. Deliveries for the 1st year will take place over 3 phases: between December 2013 and April 2014, between May 2014 and October 2014 and between November 2014 and December 2014. 500,000 tons of rice will be shipped during the first phase, 300,000 tons during the second phase, and the remaining 200,000 tons in the third phase.