Thailand hopes to export one million tonnes of rice under government-to-government (G-to-G) contracts this year out of a total export target of 8.5 million tonnes, recently appointed Deputy Commerce Minister Oranut Osathanon said yesterday.

The government expects to finalise a deal with the Indonesian government next month. It will also negotiate deals with the Philippines, Iran, Cuba and countries in Africa.

Oranut said the G-to-G strategy should increase Thai rice prices in the world market and also decrease stockpiles.

Thai rice prices have reached their highest level for nine years, due mainly to the baht's appreciation. The average jasmine rice price in January was US$535 (Bt19,142) per tonne, up from $419 last year, while 100-per-cent white rice jumped to $321 compared with $299.

The Commerce Ministry retains about 3 million tonnes of rice in its stockpiles. Early this year, it exported 270,000 tonnes of 100-per-cent white rice worth Bt357.8 million to the Iranian government.

However, the Kingdom's export volume has been controlled by exporters, who expect to achieve 7.5 million tonnes this year by averaging 600,000 tonnes per month.

"The G-to-G deals will also increase trade opportunities for Thai rice exporters in the future," Oranut said. Chookiat Ophaswongse, president of the Rice Exporters Association, said the ministry's strategy should increase Thailand's global market share and penetrate new markets.

Thai rice exports decreased to 7.3 million tonnes last year from about 10 million in 2005.

Vietnam is the major exporter of rice to the Philippines and Indonesia. "The G-to-G strategy will encourage Thailand to capture more of those markets," Chookiat said.

Thailand is the world's biggest rice exporter, with an average of more than 7 million tonnes a year, followed by Vietnam. World rice demand reaches an average of 25 million tonnes annually.

To promote Thai rice, the ministry will cooperate with the association to organise the Rice Convention during the Royal Ploughing Ceremony this year.

As part of the celebrations of His Majesty the King's 80th birthday, the event aims to promote Thai Hom Mali rice among international traders and Thai quality rice to consumers. The fair will be held at Impact Arena Muang Thong Thani from May 10-12.

In addition, Commerce Minister Krirk-krai Jirapaet will head a meeting tomorrow to discuss the rice-trading system. The minister recently instructed the University of the Thai Chamber of Commerce to study the advantages of rice pledging for farmers and the economy.

The study should be finalised in April.

Petchanet Pratruangkrai

The Nation