NFA completes bidding for rice imports

07.05.2018

The National Food Authority (NFA) has finally awarded the supply of 250,000 metric tons (MT) of rice imports to the governments of Vietnam and Thailand after a reopening of offers.

The two governments lowered their offers to match NFA’s adjusted reference prices after the failure of the first bidding conducted last April 27.

NFA’s reference price for the second bidding was set at $531 per MT for the 15 percent broken and $520.50 per MT for the 25 percent broken rice, based on the prevailing world market prices and the peso-dollar exchange rate as of May 3, 2018.

However, the agency’s spokesman, Rex Estoperez said that the country may have secured lower prices if the bidding was allowed to be done earlier.

“That is what we call as the complexity of NFA operations. Decision should always be on time. We should have imported that towards the last quarter of last year,” he expressed.

The NFA also mentioned that the import prices could have been lower if more countries were allowed to join aside from Vietnam and Thailand. The agency said that the governments of India, Pakistan and Myanmar submitted their letters of intent to join the bidding but is still being reviewed by the Department of Foreign Affairs up to now.

Vietnam offered to supply 80,000 MT of 25 percent broken rice at $517.50 per MT and 50,000 MT of 15 percent broken rice at $520 per MT.

Meanwhile, the government of Thailand initially offered $520 per MT for the supply of 120,000 MT of 25 percent broken rice, but adjusted its bid to match Vietnam’s $517.50 per MT for the same volume.

“We are happy that we have successfully completed the bidding for this initial NFA rice import of 250,000 MT so that we can immediately replenish our buffer stock and bring back our P27 per kg and P32 per kg NFA rice back in the markets,” NFA administrator Jason Aquino said.

After a notice of award is given, NFA said the two supplying countries have four working days to post a performance bond before they can secure a notice to proceed that will allow them to start loading and shipping the rice.

Of the total volume, Thailand will bring in 60,000 MT of 25 percent broken rice not later than May 31, and the balance of 60,000 MT not later than June 15.

On the other hand, Vietnam will bring in 40,000 MT of 25 percent broken rice not later than May 31, and another 40,000 MT not later than June 15. The 50,000 MT of 15 percent broken rice will be shipped by Vietnam to the designated ports not later than June 30.

The 25 percent broken rice will be loaded to the ports of Poro Point in La Union, Subic,Batangas, Tabaco, Iloilo, Bacolod, Cebu City, Tacloban, Zamboanga City, Cagayan de Oro, Davao City, General Santos City, Manila and Surigao City.

For the 15 percent broken rice, designated ports are Subic, Cebu City, Davao Cityand Manila.

After completing the government to government deal, NFA is already preparing for the procurement of another 250,000 MT of rice that will be under an open tender scheme, where supply could come from any country and suppliers could be from either the private or government sector.

Interested suppliers may acquire bid documents at the NFA’s special bids and awards committee secretariat in its central office in Quezon City until May 21, 2018, for a fee of P75,000.


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