BANGKOK: Thailand is in talks to sell up to 250,000 tonnes of rice stocks in government-to- government deals with Malaysia and China, the country's Commerce Minister said yesterday. "We are still in talks with the Malaysian government, how-ever, we haven't reached an agreement on prices yet as market prices are very volatile," Commerce Minister Porntiva Nakasai said in an interview.

Malaysia wanted to buy 100,000-150,000 tonnes of 5 per cent broken grade white rice, she said.

The 5 per cent broken grade rice was quoted at around US$590 (US$1 = RM3.44) per tonne yesterday, while the benchmark 100 per cent B grade Thai white rice was steady at US$615 per tonne, traders said.
Thailand is also negotiating with China to sell glutinous white rice from its stocks, Porntiva added, without specifying the amount China wanted to buy.

However, Commerce Ministry Permanent Secretary Yanyong Puangrach said yesterday that China wanted to buy 60,000 to 100,000 tonnes.

The 10 per cent glutinous white rice was quoted at around US$607 per tonne yesterday, traders said. Thailand, the world's biggest rice exporter, is currently holding an estimated six million tonnes of milled rice it bought from farmers during previous intervention schemes to support domestic prices. It has sold 8.2 million tonnes of rice so far this year, down 15 per cent from the same period of last year when it sold 9.7 million tonnes.

Thailand aimed to export 8.5 million tonnes this year and was expected to sell as much as 10 million tonnes in 2010, the highest since 2008, Porntiva said.

"With unpredictable weather patterns that could cut world food supply, we expect demand on rice to remain strong through next year.

"The prospects for Thai rice exports are still bright," she said.

Meanwhile, the Philippines, the world's biggest rice importer, said it will buy 474,252.70 tonnes of rice from a December 8 tender, in line with earlier estimates and potentially putting 2010 imports at near record levels.

The volume was less than the 600,000 tonnes that state grain importer National Food Authority sought to buy at the tender amid high bids. - Reuters