MANILA, Philippines – At least 5 foreign firms are bidding for the supply of Manila’s rice buffer stock this year.
The National Food Authority (NFA) allocated P17.18 billion for the importation of 800,000 metric tons. The bidding is open to countries and private companies with no existing rice supply agreement with the Philippines.
The bid quantity is broken into 4 lots of 200,000 MT each, although the minimum quantity a supplier can offer is 100,000 MT.
Of the 5 companies that have so far procured bidding documents, Vietnam Southern Food Corporation (Vinafood 2) is the only one prepared to supply the quantity in full, having paid the bidding fee for 4 lots.
The other bidders, including LG International Corporation, Asia Golden Rice Company Ltd., Thai Hua Company Ltd., and Louis Dreyfus Group, are bidding for one or 2 lots.
Ludovico Jarina, NFA deputy administrator and chairman of the NFA Bids and Awards Committee, said that due to the non-discretionary nature of the bidding, the supply would be awarded to bidders that would offer the lowest prices while still conforming to the import specifications. Supply may be awarded to multiple bidders.
Bidders must be able to supply well-milled white rice at 15% brokens. Rice must be shipped in polypropylene bags at 50 kilograms net each.
The winning bidder must be able to complete the shipment of the volume in 4 tranches between May to August.
Jarina said more companies are expected to join the bidding on April 15. He said NFA also invited the governments of Cambodia, Pakistan, India and United States to participate. He said the Thailand Department of Trade and Public Warehouse Office also expressed interest to bid.