Thai exporters expect to sell more rice to Iran in addition to two big lots sold through government channels, Thai Rice Exporters Association President Chookiat Ophaswongse said on Friday.
"Thai exporters have been in talks with Iran over the past few weeks," he told Reuters. Chookiat said seven Thai exporters were talking to Iran, which was bidding at $322 per tonne, but declined to name them. "But no deal has been done at that low price and they are still in talks," he said.
Thai 100 percent B grade was quoted at $325 per tonne, free on board. Iranian representatives were due to visit Thailand during the Thai Rice Convention 2007 from May 10 to 12 and were expected to finalise deals for July-August shipment, he said.
Iran, one of Thailand's key buyers, has bought 580,000 tonnes of Thai rice this year, 380,000 tonnes of it in government-to-government deals. "Shipments of the latest deal will finish in June and I think Iran would buy more in May for third-quarter shipment," Chookiat said.
Iran imported 650,697 tonnes of Thai rice in 2006 and was expected to buy up to 800,000 tonnes this year to ensure supplies during its conflict with the West over its nuclear ambitions.
The West says Iran could suffer a third round of UN sanctions if it did not halt its uranium enrichment work, which the West suspects could be used to build nuclear weapons.
However, Vietnam was expected to share some of the Iranian demand due to the competitive prices, Chookiat said. "Iran bought around 60,000 tonnes of 5 percent premium grade from Vietnam, but I'm not sure whether it has enough to supply Iran," he said. Vietnam, the world second-biggest rice exporter after Thailand, aims to export 5 million tonnes of rice this year, 500,000 tonnes above an initial target due to rising overseas demand.
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