5 firms buy rice import papers

MANILA, Philippines - At least five foreign firms are bidding for the supply of 800,0000 metric tons (MT) of rice this year either in part or in full.

The National Food Authority (NFA) has allocated P17.18 billion for the importation this year under an open-bidding scheme that allows all government and private companies to vie for the supply of Manila’s rice buffer stock requirement.

The bid quantity is broken into four lots of 200,000 metric tons (MT) each, although the minimum quantity to be offered per supplier is placed at 100,000 MT.

Of the five companies that have so far procured bidding documents, Vietnam Southern Food Corporation (Vinafood 2) is the only bidder prepared to supply the quantity in full, having paid the bidding fee for four lots.

The other bidders prepared to supply the volume partially include LG International Corp., Asia Golden Rice Co., Ltd., Thai Hua Co., Ltd., and Louis Dreyfus Group. These bidders are bidding for one to two lots.

At the exchange rate of P45 to $1, the per metric ton bidders have to beat the quotation of $477.28 per MT upon delivery to NFA warehouses.

Ludovico Jarina, NFA deputy administrator and chairman of the NFA Bids and Awards Committee (BAC), said that due to the non-discretionary nature of the bidding, the supply would be awarded to bidders that could supply at 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 percent brokens. Rice must be shipped in polypropylene bags at 50 kilograms net each.