NFA says International rice prices going up

MANILA, Philippines - International rice prices are creeping up once again, with the National Food Authority (NFA) seeing tenders during the second bidding for its rice procurements next year jumping up by $100 to $200 per metric ton.

In its second rice tender for its 2010 rice requirements, the NFA saw the range of tenders rising from a low of $598/MT to a high of $697/MT.

Just a month ago, at its first rice tender of its 2010 rice requirement, the NFA had been offered bids ranging from a low of $468/MT to a high of $600/MT.

Although seven firms participated in yesterday’s rice tender, only five ended up qualifying with two being disqualified due to their failure to submit the required documents.

A total of up to one million metric tons of rice was offered by the five qualifying bidders, namely Chaiyaporn Co. Ric Ltd., VinaFood, Louis Dreyfus, Asia Golden Rice Co., Ltd., and Toepfer Int’l.

Deputy administrator Ludovico Jarina said the bids submitted were “on the high side” but were still “within acceptable limits. He said the bids were tempered since it is only the Philippines that is currently in the market purchasing rice.

Yesterday’s rice tender is for the importation of 600,000 MT of rice to arrive from February to May next year.

Two more tenders have been scheduled, one for Dec. 8 and another for Dec. 15.

Based on the bids submitted yesterday, the NFA may not award all of the 600,000 MT. NFA spokesman Rex Estoperez said the bids and awards committee (BAC) would take several factors into consideration before deciding on the amount to be awarded.

These factors include prevailing international prices, the NFA’s approved budget for the tender, the effect of the accepted prices on the next bidding and palay/rice production.

In its first tender last Nov. 4, the NFA awarded to Vietnam Southern Food Corp. (Vinafood) and Daewoo International Corp. the right to supply a total of 250,000 metric tons of rice to the Philippines.

NFA Administrator Jessup P. Navarro said the agency is importing rice to improve the agency’s rice stock position at the beginning of the year.

“We have to take a proactive stance and place an early importation to maintain the supply and price stability of the basic staple,” Navarro said.