Indonesia has expressed its interest in purchasing 2 million tonnes of Thai rice next year, as stated by the Thai government on Tuesday. This procurement would fulfill Jakarta’s planned import quota, which was affected by drought and reduced the country’s 2023 rice production.
Indonesia has become one of the top rice importers globally this year due to drought conditions that have caused delays in planting for the 2024 harvest.
In line with this, Indonesia’s state procurement agency, Bulog, previously announced that the government intends to lower next year’s rice import quota to 2 million tonnes, compared to this year’s quota of 3.8 million tonnes.
Prime Minister Srettha Thavisin confirmed on Tuesday that the Thai government received a letter from Indonesia outlining their intent to purchase 2 million tonnes of rice.
However, Bulog has not yet provided a response to requests for confirmation.
According to Thai government spokesperson Chai Wacharonke, Indonesia is seeking to source 1 million tonnes from the private sector and 1 million tonnes through a government-to-government deal. Initially, Indonesia had aimed to acquire 1 million tonnes by the end of this year, but it turned out to be unfeasible.
Chai further highlighted that Indonesia is eager to purchase the rice immediately if it becomes available for sale.
Indonesia’s rice output decreased from 31.53 million tonnes to 30.9 million tonnes this year due to drought. Thailand, the world’s third-largest rice exporter after India and Vietnam, is targeting rice exports of at least 8 million tonnes this year.
Between January and October, Thailand exported 6.9 million tonnes of rice, experiencing an 11.4% year-on-year increase.
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