Thailand gets urgent rice orders from Bangladesh, Sri Lanka. (Photo: VNA)

Bangkok (VNA)
– Bangladesh and Sri Lanka are negotiating an urgent purchase of about 400,000 tonnes of rice from Thailand to replenish their falling stocks which were caused by severe droughts and floods, according to Thai media.

If the deals are sealed, all rice will be transferred within 60 days and the deal will be secured through government-to-government (G-2-G) contracts.

Each country aims to import 200,000 tonnes of rice – mostly parboiled grade and common grade white rice. The benchmark common grade 5 percent white rice was quoted at 410 USD per tonne while parboiled 100 percent grade white rice was fetched at 439 USD a tonne.

Bangladesh and Sri Lanka normally supplemented their stocks with rice from neighbouring Pakistan and India when needed. In 2016, they imported 280 tonnes and 151 tonnes of Thai rice, respectively.

However, Thailand’s state rice stocks are running low as its Ministry of Commerce has opened auctions to sell it in recent years. There are only a few million tonnes left, compared with the record high of 18 million tonnes before.

As the stocks are low, it is likely that the G-2-G rice deals could involve private firms who would deliver parts of the rice amount. Bangladesh is approaching private Thai exporters to obtain the best price.-VNA