BD to buy 200,000 tonnes Thai rice

* First govt deal to import rice from Thailand
* Aims to boost reserves amid record global food prices
DHAKA: Bangladesh will buy 200,000 tonnes of parboiled rice from Thailand, the world’s top rice exporter, as it seeks to ensure supplies of the staple in the face of record food prices, a Bangladesh food ministry official said.
The official, who declined to be identified, did not give the cost of the rice but said on Wednesday shipment would start within one month, with Bangladesh paying for the insurance. A Bangladeshi delegation visited Thailand last week to negotiate the purchase.
The government, already battling a food price inflation rate of 11 percent, is moving to speed up grain imports and stabilise domestic prices. Analysts expect food costs to rise further in coming months in step with rising global commodity prices.
This is the first time Bangladesh is buying rice from Thailand in a government-to-government deal. “The government is not doing business. We are ensuring food security to avoid any crisis,” another food ministry official said. Analysts say Bangladesh faces unrest if prices continue to rise, given that nearly 40 percent of its population survive on less than $1 a day. Although it is the world’s fourth-biggest rice producer, Bangladesh has emerged as a major importer this year and is desperately looking for dependable sources as once traditional supplier India keeps a ban on grain exports.
Food security priority: Prime Minister Sheikh Hasina told parliament on Wednesday that her government was trying to build adequate reserves of grains to ensure security of food supplies, especially for poor and middle-income people. “Keeping food supplies steady and prices within people’s buying capacity is our priority, and if needed we will suspend development activities to ensure food for all,” she said.
Neighbouring India is ready to export 300,000 tonnes of rice to Bangladesh at prices below the international market, a Bangladesh foreign ministry statement said on Tuesday. Thai rice rose to $545 per tonne from last week’s $540 per tonne on the back of loading demand after exporters committed last month to sell 820,000 tonnes of rice to Indonesia. Benchmark Thai 100 percent B grade white rice prices RI-THWHB-P1 are likely to rise to $550 a tonne by the end of February and $567.5 a tonne in March. reuters

(Source: http://www.dailytimes.com.pk/default.asp?page=2011\02\10\story_10-2-2011_pg5_27)