Thailand, China proceed with farm product agreement

BANGKOK, March 11 (TNA) - The Thai Ministry of Commerce is pushing for the implementation of a Thai-Sino memorandum of understanding (MOU) on their farm product trade, expected to begin with exports of Thai rice and natural rubber to the immense Chinese market. Thai Commerce Minister General Chatchai Sarikulya is scheduled to discuss the implementation of the MOU with Wang Xiaotao, Deputy Director of China's National Development and Reform Commission, from March 11-12. Bangkok and Beijing concluded the agreement on December 19, 2014, under which the Chinese government promises to buy two million tons of rice and 200,000 tons of natural rubber from Thailand in 2015 and 2016. The Thai rice will comprise one million tons of new rice and one million tons from the government's stockpile. Besides, the Chinese government promises to buy more rice and other farm products from Thailand during the Sino-Thai construction of new rail tracks in Thailand. Both sides will negotiate the trade through their joint steering committee, co-chaired by the Thai commerce minister and comprising executives of the Thai Ministries of Commerce, Foreign Affairs, Agriculture and Cooperatives, Finance, Transport and Industry, as well as the Office of the National Economic and Social Development Board (NESDB) and Chinese authorities. The MOU apparently proves China's confidence in Thai rice and is a positive sign for more exports of Thai farm products to China. Thailand has annually exported about 500,000 tons of rice to China so far. (TNA)