Thailand, Vietnam Eye Rice Price Deal
Thailand, the world's biggest rice exporter, has expressed its wishes to reach an agreement with Vietnam under which the two countries would increase the prices of their rice in the international market, as proposed by the Thai Trade Ministry.
Vietnam and Thailand are among the world’s largest rice exporters. The two countries can set list prices of several types of rice and then establish selling rice prices, according to the Thai Trade Ministry.
The proposal is being considered by leading rice exporters in the two countries. “Thailand wants to conduct bilateral talks over the plan,” local media quoted the Thai ministry as saying.
Currently, Thai rice prices are much higher than that of Vietnam. A ton of Thailand's 5 per cent broken rice was offered per cent293-294 per ton, while the price of similar Vietnamese rice is only US$255-260 per ton. The difference has encouraged Iranian and Filipino importers to turn to Vietnam to buy rice, according to trade experts.
Such a deal, if it is to be reached, will benefit both countries, experts said. Thailand can boost the competitiveness of its rice while Vietnam can earn more from rice exports.
High prices will also be good for rice farmers in the two countries, especially with drought and soaring fuel costs hitting both countries, experts added.
In related news, Vietnam, the world’s second largest rice exporter, has so far this year shipped around 1.87 million tons of rice worth US$466 million, of which 47 per cent of the exports are government to government contracts, according to the Vietnam Food Association (Vietfood), the country’s rice export managing body.
VNA
Vietnamese
