MANILA, Philippines - The National Food Authority (NFA) plans to import additional rice stocks under a government-to-government procurement mode for of 500,000 metric tons (MT) of rice for buffer stock for the remainder of the year.
Food security chief Francis Pangilinan said yesterday that the government has already sent invitations to Cambodia, Thailand and Vietnam to make offers.
“It is government-to-government importation based on executive agreements with Thailand, Vietnam and Cambodia. We have rescheduled the submission of offers to Monday,” he said in a text message yesterday.
The gov’t-to-gov’t procurement mode was approved during the NFA Council meeting held last Aug. 28.
The NFA Council would consider the lowest offer. The minimum volume for the offer is 200,000 MT.
Importers must supply well-milled white rice with 25 percent brokens. The rice should have been harvested from January to June 2014 and is freshly-milled.
The NFA special bids and awards committee on Aug. 27 rejected all bids for the importation of 500,000 MT rice buffer stock as all offers were way below the government budget of $456.60 per metric ton.
Bids submitted by importers LG International, Vietnam Northern Food Corp. (Vinafood 1), Louis Dreyfus Corp., and Vietnam Southern Food Corp. (Vinafood II) ranged from $460 per MT to as high as $496.75 per MT.
None of the bidders were prepared to supply the full volume. Only Vinafood 2 is prepared to supply as much as 400,000 MT. The three others were only prepared to supply 200,000 MT, 100,000 MT and 50,000 MT.
The NFA has allotted a budget of P10.27 billion for the importation of the entire volume between September to November.
The government is striving to bring in the volume within the year to bolster buffer stock and drive down the prices of commercial rice which is expected to remain high as the prevailing lean season is expected to extend to October.