Iran orders 500,000 tons of Thai rice in government-to-government deal


The Ministry of Commerce indicates that Iran has ordered 500,000 tons of rice from Thailand in a government-to-government deal.

According to the Ministry of Commerce, Thailand and Iran have signed the contract for the G-to-G rice deal in a negotiation late last week. The first batch of 250,000 tons is scheduled for delivery to Iran in October, while the rest will be delivered next year. The Ministry is also confident Iran will increase its purchase of Thai rice to 1 million tons within 2 years.

Commerce Minister Niwatthamrong Bunsongphaisan has however admitted that the problem of rotten rice and the scare over fumigated rice have greatly afflicted Thailand's negotiations of rice deals. According to him, Thailand has reassured its trading partners of the quality and safety of its rice, and is ready to allow Iran to carry out inspections. The Ministry of Commerce plans to achieve government-to-government rice deals with several other countries, including China, Indonesia, Philippines and Malaysia.

Mr. Niwatthamrong also indicates the Commerce Ministry is ready to launch the first auction of rice in the mortgage scheme on Friday. The auction will be for 350,000 tons of rice, of which 150,000 tons will be white rice and 200,000 tons will be broken rice.