Rice import bidding fails anew

MANILA, Philippines — State-run National Food Authority has failed anew to secure the 203,000 metric tons (MT) of rice via government to government (G2G) scheme after Thailand and Vietnam exceeded the agency’s reference price.

During the bidding on Tuesday, the governments of Thailand and Vietnam both offered bids that were way above the NFA reference price of $447.88 per metric ton for the supply contract of the 203,000 MT of 25 percent brokens long grain white rice well-milled.

“We still want to evaluate and report to the NFA Council for necessary direction. We do not want to speculate, pre-empt,or make any decision because these prices are what is on the board,” Committee on Government-to-Government Procurement chairperson and NFA assistant administrator Mercedes Yacapain told reporters.

“Our reference price is based on our study on the trends of the international market. What we will do is assess again, study the prices, report to our superiors who will give us the necessary directions,” she said.

During the initial bidding, Thailand, represented by its Department of Foreign Trade, offered to sell 100,000 MT of rice at $480.50 per MT.

Vietnam, represented by Vietnam Southern Food Corp. II, on the other hand, offered to supply the whole volume at $483 per MT.

The NFA Special Bids and Awards Committee declared a failed bidding and asked both countries to resubmit offers.

However, the second round of bidding also failed as the ASEAN neighbors refused to lower their bid offers to align with NFA’s reference price.

Vietnam only lowered its bid to $481.50 per MT, while Thailand did not change its bid offer.

Last week, the bidding also failed after both Thailand and Vietnam decided to not join the bidding proper amid conflicts with the terms of reference.

Only the two countries can participate in the bidding process since they are the only ones with an existing memorandum of agreement with the Philippines.

If bidded successfully, the rice imports will be discharged at the ports of La Union, Subic, Manila, Cebu, Tacloban, Zamboanga, Cagayan de Oro, General Santos City, Davao, and Surigao.

NFA said all rice to be imported should have been harvested starting June 2018 onwards only and stocks should be freshly milled and not more than four months prior to loading.

The 203,000 MT of rice forms part of the 750,000 MT of the commodity being readied for importation.

Prior to the G2G, only 47,000 MT of the first 250,000 MT were taken by private traders for the open tender importation.