Thailand and Singapore signed a Memorandum of Understanding (MoU) yesterday on food security, under which Singapore has agreed to buy 100,000 tonnes of Thai rice over the next five years.
Commerce Minister Suphajee Suthumpun signed the MoU on behalf of the Thai government. The event was witnessed by Prime Minister Anutin Charnvirakul and his Singaporean counterpart, Lawrence Wong.
The Singapore Food Agency will be responsible for the implementation of the MoU, which is the first of its kind between the two ASEAN member countries. The MoU can be extended, with the approval of both parties, and the price of the rice is to be determined by world markets.
Although the amount of rice that Singapore has agreed to buy is not significant, compared to Thailand’s total rice exports each year, Suphajee said the agreement constitutes an important first step in laying the foundation for the development of food safety in the region.
Suphajee also said that the deal reflects Singapore’s trust in and recognition of the quality of Thai rice, noting that the island nation has high quality standards for rice and agricultural products, adding that she hopes similar trade deals will be extended to other Thai farm produce and among other trading partners of Thailand worldwide.
During the first nine months of this year, Thailand exported 90,031 tonnes of rice to Singapore, compared to 85,742 tonnes during the same period last year. The exported rice was 49.99% Hom Malee, 29% white rice and 16.26% Hom rice.
Thailand is the third largest rice exporter to Singapore, with only 22.34% of market share, after India’s 42.82% and Vietnam’s 28.10%.
