State-run National Food Authority (NFA) said on Thursday that it has officially awarded the supply of 500,000 metric tons (MT) of rice to Vietnam under a government-to-government tender.
In a telephone interview, NFA spokesperson Rex Estoperez said that the agency’s Bids and Awards Committee has approved the purchase of half a million tons of rice from the Vietnam Food Association.
Estoperez added that delivery of 200,000 MT of rice would start December 2013, which would replenish the NFA’s buffer stock. The remainder will be shipped early next year.
Vietnam offered the lowest bid of $462.25 a metric ton during Tuesday’s tender, trumping Thailand’s offer of $475 a MT, while Cambodia, the third country allowed to participate in the bidding, failed to submit an offer.
“Both Vietnam and Thailand offered to supply the 25 percent broken, long grain, well-milled rice variety,” Estoperez said.
The price offered by Vietnam is also lower than the world market,” NFA Administrator Orlan Calayag said.
Manila earlier announced the importation of 500,000 MT of rice—under a government-to-government deal—will help beef the government’s buffer stock after Super Typhoon Yolanda damaged crops.