The National Food Authority (NFA) on Tuesday said six Southeast Asian companies would likely secure the contract to supply 250,000 metric tons (MT) of imported rice to the Philippines.
The NFA made the pronouncement following an auction held in Quezon City. Most of the winning bidders were from Vietnam.
Four rice exporters from Vietnam secured six lots representing 175,000 MT. These include state-run Vietnam Southern Food Corp. II (Vina Food II), which offered to supply 50,000 MT for $424.45 per MT; and Hiep Loi Food Joint Stock Co., which will deliver 25,000 MT of rice for $425.9/MT.
Two other Vietnamese companies—Tan Long Group Joint Stock Co. and Gia International Corp.,— secured a total of four two lots, totaling 100,000 MT. Tan Long would supply rice at $414/MT and $409/MT, while Gia International Corp. pegged its bid at $421.64/MT and $415.65/MT.
Singapore-based Olam International Ltd. offered to supply 50,000 MT of rice at $413.89/MT, while Thailand-based Capital Cereals Co. Ltd. would deliver the remaining volume of 25,000 MT at $431.7/MT.
The NFA pegged the reference price at $451.08/MT and divided the 250,000 MT into eight lots (six lots of 25,000 MT each and two lots of 50,000 MT each) to allow more private-sector participation.
The government had set aside a budget of P5.637 billion for the purchase of imported rice. Based on the offers on Tuesday, the government would save some P394 million as the total amount reached $104.84 million, or P5.234 billion.
NFA Deputy Administrator Tomas R. Escarez said the unspent amount for the importation will go back to the food agency’s budget.
Of the 21 foreign suppliers that secured bidding documents from the NFA, Escarez said only 18 companies showed up during the auction.
Out of the 18 companies, only 16 were qualified to bid because two interested exporters did not submit their offers, while a Hong Kong-based company did not meet the agency’s qualifications.
However, the NFA gave Hong Kong-based company Singsong Ltd. three days to file a motion for reconsideration and justify their participation in the bidding.
“If we will consider their motion, then we will open their bids and evaluate it, along with the 16 others,” he said.
If the Hong Kong firm’s bid is lower than those offered by the six winning companies, Singsong would be able to secure a supply contract from the NFA.
“There is a chance that 50,000 MT out of the 250,000 MT could still change if [Singsong] will satisfy the documentary requirements and if its offer is lower,” he said.
However, Escarez added there will be no changes in the timetable set by the NFA for the evaluation and award of supply contracts.
All the winning bidders will be subjected to a postqualification evaluation on July 27 and 28. If the bidders pass the postqualification evaluation, they will be issued a notice of award on July 31.
“The awarded suppliers will then be issued a notice to proceed on August 3,” he said.
The NFA divided the delivery of the 250,000 MT of rice into two periods: August and September. The NFA said 120,000 MT of rice should arrive within August, while the remaining 130,000 MT should arrive by September.
The NFA added its remaining rice stockpile as of July 25 is sufficient to meet the country’s requirement for four days.
The government decided to import rice under the government-to-private sector scheme to prop up the NFA’s buffer stock during the lean months of July, August and September.