Vietnam offered the lowest bid during Tuesday’s tender for the supply of 500,000 metric tons (MT) of rice to Manila, the National Food Authority (NFA) said.
NFA Administrator Orlan Calayag said that only two countries—Vietnam and Thai-land—submitted bids for the planned importation of rice after storms ravaged crops in parts of the Philippines.
Calayag said that Vietnam offered $462.25 a metric ton—which already includes the cargo, insurance, freight (CIF); del-ivered, duties unpaid (DDU); and free on warehouse (FOW) price—beating Thailand’s $475 a MT bid offer.
“The price offered by Vietnam is also lower than the world market,” Calayag said.
The rice stock specified under the tender is 10-percent long grain white rice with 25-percent broken, he added.
At present, freight on board (FOB) price quoted by Oryza Global Rice for 25-percent broken was pegged at $375 a MT.
The NFA chief also said that the agency expects delivery of rice to start by mid-December 2013, adding that the entire volume should arrive in the country by February so as not to affect prices during the summer harvest.
The volume, Calayag said, will form part of the Philippine government’s buffer stocks. It will also serve as contingency stocks during natural or man-made calamities.
Calayag, however, said that the NFA has yet to announce the winning bidder for the rice supply, saying that the Bids and Awards Committee and the Commission on Audit are still reviewing documents.
“We are also negotiating, whether can still lower their offer. We want this to be advantageous to the Philippine government,” he said.
Manila earlier announced that importation of 500,000 metric tons of rice—under a government-to-government deal—will help beef up the government’s buffer stock after Super Typhoon Yolanda dam-aged crops.
The NFA also said that that countries with existing supply agreement with the Philippines—such as Cambodia, Thailand and Vietnan—will be allowed to join the rice tender.