AgriNurture Inc. gains competitive edge in rice supply bid

MANILA, Philippines — Listed agricultural trading firm Agri-Nurture Inc. (ANI) has secured the original proponent status for its unsolicited proposal to supply the rice requirements of the National Food Authority.

In a regulatory filing, ANI said it was recognized by the NFA as an original proponent for a public-private partnership project that aims to supply rice to beef up the agency’s inventory.

Based on the proposal, ANI will finance the procurement of up to 500,000 metric tons (MT) of rice with the NFA identifying the specifications and exact volume needed.

ANI is owned by businessman Antonio Tiu, who was dragged into the controversy surrounding former vice president Jejomar Binay’s supposedly ill-gotten wealth.

Both parties, meanwhile, will determine the origin, suppliers, delivery and arrival periods, pacing and loading, and discharging ports of the imported rice.

The company maintained that NFA has no risk or exposure to losses as all risks shall be borne by ANI  from the time of purchase up to the point of dealing with undisposed stocks.

The additional supply, which is equivalent to about two weeks, aims to boost NFA’s dwindling buffer stock.

NFA still has limited inventory of three days from the mandated 30 days and even if imports have started arriving two months ago, the stocks were immediately distributed to markets to help bring down prices of commercial rice.

The proposal will now proceed in accordance with both the technical and legal processes under the government’s guidelines and procedures for entering into joint venture agreements between the government and private entities.

For the first semester, ANI saw its net income surge to nearly P50 million as consolidated sales jumped 42 percent to P846 million. Gross profit soared 85 percent to P256 million despite the sharp drop in local distribution sales.

The company is involved in various agro-commercial businesses focusing on trading of grains and fresh produce in the Philippines and export markets.

ANI supplies other homegrown fruits such as banana, pineapple, mango, processed fruits and coconut water to Hong Kong, China, Australia and Europe, among others.