The National Food Authority (NFA) said on Tuesday that five traders from Asia are poised to supply the 500,000 metric tons (MT) it needs to beef up its buffer stock.
NFA Deputy Administrator Judy Carol Dansal said the food agency is “happy” with the outcome of the bidding, which she described as “very successful.”
The government conducted an open tender involving 14 compliant traders and companies. The NFA is importing rice under the government-to-private sector scheme.
Singapore-based Olam International Ltd. is set to supply the majority of the 500,000 MT as it made the lowest offers in four lots, which amounted to 210,000 MT.
Vietnamese firm Tan Long Group Joint Stock Co., pitched the lowest bid for Lot 2 at $459 per MT for 118,000 MT, which will be discharged at Subic port.
Myanmar-based Shwe Wah Yaung Agriculture Products Co. Inc. may secure Lot 4 to supply 40,000 MT bound for Tabaco at its offer of $418.65 per MT.
Thai firms Asia Golden Rice Co. Ltd. had the lowest bids for Lots 6 ($458 per MT) and 7 ($439.75 per MT), which has total volume of 99,000 MT, while Thai Capital Crops Co. Ltd. may secure Lot 8 (45,000 MT) for its offer of $439.75 per MT.
The food agency claimed that it may save some $14.488 million (P789.625 million) from the tender as the bids of the five Asian traders, which amounted to $220.511 million (P12.017 billion), were lower than the food agency’s total budget of $235 million (P12.807 billion).
The “successful” auction of the NFA comes after its government-to-government (G2G) bidding for 203,000 MT of rice failed last week. Offers from Thailand and Vietnam were rejected, as these were higher than the reference price of the food agency.
The NFA is expected to rebid the 203,000 MT rice imports via the G2G mode this week, as the government is racing to end the year with a bigger rice inventory.
The food agency is beefing up its rice stockpile in line with the order of President Duterte to fill government’s warehouses with the staple to ensure the availability of NFA rice.
The NFA’s buffer stock was depleted earlier this year as the food agency was unable to purchase palay from local farmers and it was not allowed to import rice by the NFA Council, its highest-policy making body.