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Thailand says to sell 1 million tons of rice to China

BANGKOK - China will buy 1 million tons of rice from Thailand, the Thai commerce minister said on Monday, easing pressure on a military government struggling to shift stockpiles of the grain accumulated under a previous farm-subsidy programme.

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BANGKOK - China will buy 1 million tons of rice from Thailand, the Thai commerce minister said on Monday, easing pressure on a military government struggling to shift stockpiles of the grain accumulated under a previous farm-subsidy programme.

Thai Commerce Minister Chatchai Sirikalya, following a visit to China last week, said the country agreed to buy 1 million tonnes of rice to be delivered at year-end.

Thailand, the world's second-largest rice exporter, has about 14.5 million tons of rice in stockpiles built up under a generous rice subsidy scheme run by a government that was overthrown by the military in May 2014.

The rice will be sold to China at market prices, said Chatchai, adding that the sale involved Hom Mali, or Thai jasmine rice, and Thai 5-percent broken white rice.

"In the past week the commerce ministry travelled to China and agreed with the Chinese governmentto do a government-to- government sale and agreed to officially sell rice (to China)," Chatchai told reporters.

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Chinese government officials did not immediately respond to emailed requests for comment.

In December, Thailand said China would buy 2 million tons of rice after the two countries signed a memorandum of understanding during a two-day regional summit in Bangkok.

The deal announced on Monday was part of that agreement, said Chatchai, adding that negotiations for the sale of a further 1 million tonnes would begin in September.

He said Thai government officials would travel to Iran at the end of August to try to strike similar deals.

"Iran has expressed interest in buying rice at the end of August," said Chatchai.

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