Friday, November 14, 2014

Thailand. Ministry plans 2m-tonne rice deal with China

Thailand plans to sell a further 2 million tonnes of rice to China under a government-to-government contract after the delivery of an existing order for 1 million tonnes to that country is completed next year.

Commerce Minister General Chatchai Sarikulya said his ministry would discuss the new G2G rice contract with the China National Cereals, Oils and Foodstuffs Corporation (COFCO), a state agency for oil, rice and foodstuff imports, with a view to further sales.

"The country will accelerate shipments of the existing order for 1 million tonnes. We will sell another 2 million tonnes to China after completion of the 1-million-tonne shipment," he said.

Thailand so far has shipped 300,000 of the 1 million tonnes under the existing contract, and is scheduled to ship the rest by next July. Chatchai said that for the remaining 700,000 tonnes, the government would encourage China to import jasmine rice, as it has more added value.

China is one of the largest import markets for Thai rice, with jasmine rice picking up interest among consumers.

During a trip to Thailand by COFCO officials this week, the delegation will be taken on a tour of rice and jasmine-rice fields and witness the production process from milling to packaging, in order to gain confidence in Thai products. Also, the ministry's Foreign Trade Department will demonstrate the DNA inspection process to the visitors.

To promote Thai rice in China, the Commerce Ministry will launch a series of activities including a cooking pavilion at a Chinese supermarket to raise awareness of Thai products.

With closer cooperation between Thai and China agencies, it is hoped that Chinese consumers will develop a preference for Thai rice.

Moreover, Thailand will work closely with Chinese importers to tackle the problem of lower-quality grains being mixed with Thai rice. The ministry will insist on the display of the Thai rice-certification logo to ensure that all Thai rice sold in China is pure. Any rice trader found mixing Thai rice with other products will be subject to punishment for breaching Thai intellectual-property rights.

The ministry will encourage Thai rice exporters to use the certification logo for jasmine rice to boost the confidence of buyers.

China imports about 4 million tonnes of rice each year, mainly from Vietnam and Thailand.

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