NFA buys rice from Vietnam

MANILA, Philippines - The National Food Authority (NFA) announced yesterday that it has awarded the supply of 187,000 metric tons (MT) of rice buffer stock requirement to Vietnam’s Southern Food Corporation under a government to government tender.

The tender specified a rice stock that is 10 percent long grain white rice with 25 percent brokens.

The rice to be imported would be used as buffer stock during the lean season and in times of calamity.  The NFA currently holds a buffer stock of 19 days against a 30 day buffer stock requirement.

The imported rice is expected to arrive mid-June or earlier, in time for the traditionally lean season of July to September.

ASEAN member states with existing rice supply agreement with the Philippines were invited to submit their sealed offers and quotations but only Thailand and Vietnam joined the tender held last April 3.

Thailand, through its Department of Foreign Trade, offered $568 per MT with a minimum offered volume of 100,000 MT and a maximum of 187,000 MT.

State-run Vietnam Southern Food Corporation, on the other  hand, offered $459.75 per MT for the maximum volume.

Vietnam’s offer was lower by $108.25 per MT. It was even lower than NFA’s 2012 rice import cost of $470.70 per MT.

“We are optimistic that this will be our last importation for the year because we have a good harvest. The National Rice Program is also on track with its rice production,”  NFA administrator Orlan Agbin Calayag told reporters yesterday.

The Philippines intends to produce more than 20 million MT of unmilled rice this year against production of more than 18 million MT in 2012.

Calayag said the NFA would continue to be aggressive in its palay procurement within the year.

The NFA is allotting P10.9 billion to procure 615,985 metric tons (MT) of palay from farmers this year. 

Calayag said the agency has procured more than 200,000 MT to date.

The NFA buys clean and dry palay at P17 per kilogram (kg), with additional incentives such as graduated delivery fee up to a maximum P0.50/kg; drying incentive fee of P0.20/kg; and Cooperative Development Incentive Fund assistance of P0.30/kg.