500,000-MT rice importation by NFA Thailand submits best offer

MANILA, Philippines - Thailand yesterday submitted the best offer for the government-to-government procurement of 500,000 metric tons (MT) rice buffer stock for this year, the National Food Authority (NFA) announced yesterday.

The NFA yesterday accepted offers for the supply of the buffer stock weeks after the failed bidding on Aug. 27.

Countries that submitted offers included Cambodia, represented by its embassy in Manila, and Vietnam, represented by Vietnam Southern Food Corporation (Vinafood2).

Thailand, represented by its Department of Foreign Trade, offered $475 per metric ton (MT) for a total supply of 300,000 MT against a required minimum supply offer of 200,000 MT.

Vietnam, on the other hand, offered $479 per MT for a total supply of 400,000 MT.

Cambodia was disqualified from participating in the offer because it could not conform to the delivery period stipulated in the Terms of Reference, as it would only be able to deliver in April 2015.

The Terms of Reference stipulates the delivery of well-milled white rice with 25 percent brokens in three tranches between October to December. The supply must be fresh-milled and harvested between January to August 2014.

The first 40 percent of the volume must be delivered by October 15, the next 40 percent by Nov. 15 and the remaining 20 percent by December 15.

NFA spokesman Rex Estoperez said the government signed the renewal of the supply agreement with Thailand just last week.

He said the NFA Council would deliberate on the offers and is expected to come up with a decision today (Sept. 16). If Vietnam could match Thailand’s offer, it may then supply the balance of 200,000 MT.

The NFA special bids and awards committee on Aug. 27 rejected all bids for the importation of the 500,000 MT buffer stocks as all offers were way below the government budget of P456.60 per MT.

Bids submitted by importers LG International, Vietnam Northern Food Corporation (Vinafood 1), Louis Dreyfus Corp., and Vietnam Southern Food Corporation (Vinafood II) ranged from $460/MT to as high as $496.75/MT.

The government is striving to bring in the volume within the year to bolster the buffer stock and drive down prices of commercial rice which is expected to remain as high as the prevailing lean season for palay cultivation is expected to extend to October.