21 January 2019

China ditches 1.2 mln ton Thai rice deal, FT says

China has scrapped a deal to buy 1.2 million tons of Thai rice, about 14 per cent of annual exports, because of a corruption probe into Bangkok’s troubled agricultural subsidies scheme, the Financial Times reported Tuesday. A Thai bank also pulled its support for the project, whose funding shortages have triggered protests from unpaid farmers, the report said. China withdrew from the rice deal because it lacks confidence to do business with Thailand, Commerce Minister Niwatthamrong Bunsongphaisan was quoted as saying. The move followed an anti-corruption investigation last month into a Thai subsidy scheme that is soaking up US$4 billion a year, the report said.

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