Thailand seals China deal to export 500k tonnes of rice
Thailand plans to negotiate rice delivery terms with a Chinese state-owned firm after securing a deal to export 500,000 tonnes under a G2G agreement.
The Department of Foreign Trade (DFT) has confirmed plans to finalise delivery negotiations with China’s Cofco Corporation, a state-owned agricultural importer. The shipment will include 280,000 tonnes already agreed upon under previous contracts, and a fresh batch bringing the total to 500,000 tonnes.
Arada Fuangtong, director-general of the DFT, said the Chinese government has given the green light in principle, but an official confirmation letter is required before final talks can proceed. Once received, discussions with Cofco will determine the delivery timeline.
Under typical G2G frameworks, rice deliveries are completed within a year, though extensions can be negotiated annually. This time, Thailand plans to offer a wider range of rice varieties, including glutinous rice, a shift from past deals focused solely on 5% white rice.
Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said the market responded positively to news of China’s purchase. Prices have stabilised and could fall further if export plans proceed smoothly.
Exporters expect shipments to begin in early 2026, given the two-month legal and contractual process G2G sales require. If deliveries are staggered, for example, in monthly batches of 100,000 tonnes, domestic prices could see a slight uptick due to tighter supply. However, any price increase is expected to be moderate, influenced by global demand from other key importers such as Indonesia and the Philippines.
Currently, Indonesia has yet to import Thai rice this year, while the Philippines is still finalising its plans for 2026. Exporters are also watching how the market reacts to the return of Chinese demand, with many holding on to stock while awaiting confirmation on delivery schedules, according to Bangkok Post.
Between January and October this year, Thailand exported 6.65 million tonnes of rice, a 20% drop compared to the same period last year. However, if November and December shipments hit around 700,000 tonnes each, total rice exports for the year could exceed 8 million tonnes, offering a welcome rebound for the industry.
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