1m tonnes to come from private sector and the rest through G-to-G deal

Farmers harvest rice in a field in Chai Nat province in August. (Photo: Reuters)

Indonesia is seeking to buy 2 million tonnes of Thai rice next year, the Thai government said on Tuesday, a volume that would fulfil Jakarta’s planned import quota after drought reduced its 2023 production.

Indonesia has emerged as one of the world’s top rice importers this year and drought has delayed planting for the 2024 harvest.

Its state procurement agency Bulog last month said the government would set next year’s rice import quota at 2 million tonnes, down from this year’s quota of 3.8 million.

Prime Minister Srettha Thavisin said the government had received a letter from Indonesia on Monday outlining the intent to buy 2 million tonnes of the grain.

Bulog did not immediately respond to a request for confirmation,

Indonesia is seeking 1 million tonnes from the private sector and 1 million tonnes in a government-to-government deal, Thai government spokesperson Chai Wacharonke told a briefing.

Initially, Indonesia wanted 1 million by the end of this year, which was not possible, Mr Chai added.

“They want the rice right away. If we’re ready to sell it, they’re ready to buy it,” he said

Indonesia’s rice output this year dropped to 30.9 million tonnes from 31.53 million tonnes a year ago.

Thailand, the world’s third biggest rice exporter behind India and Vietnam, is targeting exports of at least 8 million tonnes of the grain this year.

From January through October, the country exported 6.9 million tonnes of rice, up 11.4% year-on-year.

Published Date: December 19, 2023