Vietnam to bag deal for part of PH rice import needs

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Vietnam to bag deal for part of PH rice import needs
The Philippine government moves to further improve the rice buffer stock for the coming lean months brought by the expected poor production this semester

MANILA, Philippines – The government was able to procure only a portion of the programmed importation of 250,000 metric tons (MT) of rice for the lean season as Friday’s tender was undersubscribed. 

The bids and awards committee of the National Food Authority (NFA) awarded the supply contract for 150,000 MT to Vietnam Southern Food Corporation (Vinafood 2) for $410.12 per MT after the state-run company agreed to match the NFA’s reference price.

The NFA is expected to issue the Notice of Award to Vinafood 2 on Wednesday, June 10. Vietnam should be able to deliver the volume specified as well-milled long grain white rice with 25% brokens on or before July 15.

Vietnam and Thailand – the only countries to participate in the government-to-government tender held Friday, June 5 – struggled with the NFA’s reference price. 

The NFA bids and awards committee initially rejected the offers made by the two countries as these were higher than the reference price of $410.12 per MT.

Thailand first offered to supply 100,000 MT for $419 per MT while Vietnam offered to supply the full volume for as much as $419.35.

Cambodia, which was also invited to make an offer, had formally declined but did not disclose the reason.

After the failed bid, Vietnam agreed to match the government’s reference price while Thailand declined to make another offer.

“It’s the decision of the department of foreign trade. We have sufficient supply. In the future we will still participate in the bidding,” Malou de Leon, marketing officer of the commercial affairs of the Royal Thai Embassy, said after the tender.

Bids and awards committee chair Joseph de la Cruz said the committee will discuss the mode of procurement for the remaining 100,000 MT for recommendation to the NFA Council.

“We will discuss what would be done with the left-over volume, if we will pursue another round of bidding or another government-to-government procurement. It depends on what the council will decide,” De la Cruz said.

The remaining 100,000 MT should be delivered before August 15.

De la Cruz said the reference price is based on prevailing world market prices and is not too low.

“We cannot say that the reference price is too low because we have accessed the latest world market price. If it is low, Vietnam would have also retracted. If it is unreasonable, they would not have made a second tender,” he said. –

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