Vietnam, Thailand win bid to supply rice to Philippines

MANILA, Philippines – Vietnam will supply the majority share of the 250,000 metric tons (MT) of the programmed importation for buffer stocking this year after agreeing to match Thailand’s price offer.

State-run National Food Authority’s (NFA) government-to-government procurement committee yesterday awarded the supply of a total of 150,000 MT to Vietnam Southern Food Corp., while the supply of a total of 100,000 MT was awarded to Thailand, which was represented by its Department of Foreign Trade.

The NFA yesterday received offers for the procurement of 250,000 MT of well-milled, long grain white rice at 25 percent brokens.

Thailand offered $424.85 per MT, lower than the government’s budget of $425 per MT.

To supply the balance, Vietnam lowered its first offer of the exact $425 to match Thailand’s offer.

Half of the total importation volume should be delivered to the Philippines not later than Sept. 30, 2016, while the other half should be delivered not later than Oct. 31 this year.

Before arriving with the final agreements, the NFA Council rejected the bids of both countries after Vietnam and Thailand exceeded the government’s reference price, reaching $432.75 per MT and $432 per MT, respectively.

Both parties were requested to resubmit their offers on the same day, thus arriving at the $424.85 per MT price offer.

The rice imports would be used for the country’s mandatory buffer stocking requirement as the state rice importer is mandated by law to have at least a 15-day buffer stock at any given time, and 30-day buffer stock during lean months.

The country has entered the lean months which started last July and will end by September.

The total volume would be purchased through government-to-government procurement deals with countries that have procurement agreements with the Philippines like Thailand and Vietnam.

Cambodia, which also has a rice supply agreement with the Philippines, did not submit offers.

Last year, NFA imported around 1.2 million MT of rice in preparation for the severe effects of El Nino but the dry spell was somewhat averted with the interventions of the Department of Agriculture (DA).

Meanwhile, the NFA reiterated it has trimmed its debt to P158.9 billion as of the end of August this year.  The amount represents the costs incurred by the agency in fulfilling its mandate of stabilizing the price and supply of rice at both farm-gate and consumer level.

“The proposal to abolish or reduce NFA to merely regulatory functions hinges on the question of whether or not the government is ready to let go of its responsibility to ensure national food security,” the NFA said.

“In times of calamities, only the NFA braved bad weather, bad roads and unstable peace and order conditions to deliver and ensure the availability of rice for the poor and underprivileged segment of Philippine society,” it added.