Vietnam, Thailand win NFA bid to supply 500,000-MT rice

MANILA, Philippines - Vietnam yesterday won the majority share of the 500,000 metric tons (MT) of the programmed importation for buffer stocking this year after agreeing to match Thailand’s price offer to be able supply the balance of the requirement.

The National Food Authority’s (NFA) government-to-government procurement committee yesterday awarded the supply of a total of 300,000 MT to Vietnam Southern Food Corp., while the supply of a total of 200,000 MT was awarded to Thailand, which was represented by its Department of Foreign Trade.

The NFA yesterday received offers for the procurement of 250,000 MT of well-milled, long grain white rice at 25 percent brokens and 250,000 MT at 15 percent brokens.

The rice stock would be used for the country’s mandatory buffer stocking requirement for the lean season that starts in July. The government is required to maintain a buffer stock of at least 30 days—but ideally 90 days—for use during the lean season.

The total volume would be purchased through government-to-government procurement deals with countries that have procurement agreements with the Philippines like Thailand and Vietnam that submitted offers yesterday.

Cambodia, which also has a rice supply agreement with the Philippines, did not submit offers.

The NFA Council is set to award the supply of 100,000 MT to Thailand for 15 percent brokens and 150,000 MT to Vietnam. Thailand offered $441 per MT against the government’s budget of $442.9 per MT. To be able to supply the balance, Vietnam lowered its first offer of $442.5 per MT to march Thailand’s offer.

The council is also set to award the supply of 100,000 MT to Thailand for 25 percent brokens and 150,000 MT to Vietnam. Thailand offered $421 per MT against the government’s budget of $425.85 per MT. To supply the balance, Vietnam likewise lowered its first offer of $424.50 to match Thailand’s offer.

Half of the total importation volume should be delivered to the Philippines not later than March 31, 2015, while the other half should be delivered not later than April 30, 2015.

The NFA Council is set to approve the award on March 2 and should issue the notice of award not later than March 3, said procurement committee chairman Piolito Santos.

The winning bidders should be able to sign the contract between March 4 to March 10, after which, they would be able to proceed with the delivery.

Malou De Leon, marketing officer of the commercial affairs of the Royal Thai Embassy, said Thailand is not able to supply a larger volume because of supply commitments to other countries.

Under the terms of reference, the next best bidder may match the offer of the best bidder to supply the balance of the volume of the former unable to do so.