The National Food Authority (NFA) has officially awarded to Vietnam’s food agencies contracts for the supply of Manila’s 800,000 metric tons rice requirement, which will serve as buffer stock during the lean season.
In a telephone interview, National Food Authority Spokesperson Rex Estoperez said Vietnam Northern Food Corp. (Vinafood I) and Vietnam Southern Food Corp (Vinafood II) were awarded with the supply contract after passing the post-qualification review by the NFA’s Bids and Awards Committee.
Estoperez said that Vinafood I was awarded a contract for 200,000 MT, while Vinafood II received the contract for 600,000 MT. The Vietnam state-owned agencies are expected to start delivery of the grains from May to August.
To recall, Vinafood I offered to supply Manila with 200,000 MT of rice at price of $436 to $439 per MT, while Vinafood II offered to deviler 600,000 MT of rice at price of $436.50 to $439.25 per MT.
The bid offers were significantly lower than the $477.28 per metric ton ceiling set by the NFA, which already includes the cost of Cargo, Insurance, Freight (CIF); Delievered, Duties Unpaid (DDU); and Free on Warehouse (FOW) price.
The NFA has allotted P17.182 billion budget for the purchase of rice stocks. With the supply agreement now awarded, the NFA is also looking at the private sector for the utilization of the country-specific quota of the minimum access volume (CSQ-MAV).
At present, the Philippines is allowing 350,000 metric tons (MT) of rice to enter the country annually at a reduced tariff rate of 40 percent, while shipments outside MAV pay higher rates.
Of the total MAV volume, some 163,000 MT are allocated for private importation, while the remaining 187,000 MT, or the so-called omnibus volume of MAV, are reserved for possible government procurement.