Thailand Approves Additional 220,000 Tonnes Rice Sale to China

The government has greenlit an expansion of state-to-state (G to G) rice sales to China by a further 220,000 tonnes, while moving ahead to amend the existing agreement and extend delivery until 2026. According to the government office, the Cabinet has approved the increase in rice trading volume under a bilateral agricultural trade memorandum signed on December 19, 2014, as proposed by the Ministry of Commerce. The expansion aligns with China's wishes, with COFCO Corporation seeking to purchase a combined 500,000 tonnes from Thailand—280,000 tonnes from the existing contract and 220,000 tonnes in new purchases. The Ministry of Commerce has been tasked with drafting an amended contract in coordination with the Foreign Ministry, while incorporating views from the Agriculture and Cooperatives Ministry and the National Economic and Social Development Council (NESDC).

Under the original agreement, Thailand committed to supplying 1 million tonnes of rice to China. To date, the Department of Foreign Trade has delivered rice in eight shipments totaling 720,000 tonnes, with 280,000 tonnes still outstanding. The contract has been amended ten times, and both sides have agreed to modify it to accommodate the additional purchase volume and extend the final delivery deadline to 2026. The Ministry of Commerce noted that this volume increase represents a substantial change from the original framework previously approved by Cabinet, necessitating Cabinet reconsideration before contract amendments proceed. The Cabinet also acknowledged guidelines for G to G rice purchase negotiations and contracts, covering negotiation criteria, payment terms, delivery procedures, contract drafting steps, and information disclosure protocols, to standardize and ensure accountability in government rice trading.