THAILAND offered the best bid for the supply of 300,000 metric tons of rice under a government-to-government (G2G) tender on Monday, with a further 200,000 MT likely to come from Vietnam, the National Food Authority (NFA) said.
In an interview, NFA spokesperson Rex Estoperez said that that NFA Council is expected to deliberate on the results of the G2G offers and a decision is expected by today.
“The results will be finalized by Tuesday. I think the NFA Council will have an emergency meeting to approve the offers,” Estoperez said.
A G2G transaction requires an existing executive agreement for a country to participate in the bidding for rice supply. At present, only three countries have existing agreements with the Philippines – Thailand, Vietnam and Cambodia.
During Monday’s G2G tender, Thailand offered $475 per MT for 300,000 MT of well-milled long grain white rice while Vietnam offered $479 for 400,000 MT. The NFA’s Special Bids and Awards Committee disqualified Cambodia because it could not comply with the delivery dates required.
The stipulated delivery dates are 200,000 MT (40 percent) by October 15, another 200,000 MT (40 percent) by November 15, and 100,000 (20 percent) by December 15.
With Thailand’s supply limited to only 300,000 MT, the NFA-BAC asked Vietnam to match Thailand’s offer of $475 per MT to supply the balance of 200,000 MT.
“We have the rice stocks. But under the terms of reference for the supply agreement, we are required to sell rice that are harvested during January to August, and freshly milled,” a representative from Thailand said.
Thailand was allowed to participate in Monday’s G2G deal after Presidential Assistant for Food Security and Modernization Secretary Francis Pangilinan signed the renewal of the rice trade agreement between the two countries on Friday. Thailand’s rice supply deal with the country expired last December 2013.
The NFA resorted to a G2G procurement after an open bidding for rice supply failed last month. The state-run grains agency announced that all bid offers were non-responsive after bidders submitted offers that were higher than the approved budget for the contract of $456.60 per MT.