Thailand has sold 200,000 MT of 100 percent B grade rice to Iran for February-May shipment, Thai Commerce Minister Krik-Krai Jirapaet said on Friday.

The rice is from the new intervention scheme which started in November. The government purchases from farmers in Thailand's main harvest is still under way.

The rice was sold at $317 PMT, a little higher than the market price of around $315 PMTas Iran required newly harvested premium grade rice.

The deal would be for around 300,000 MT and Iran is expected to import up to around 1 million MT of rice in 2007 a little more than 900,000 this year as drought hit its main rice growing areas in the north.