6 firms bid to import 500,000 tons of rice

MANILA, Philippines - Six companies are bidding for a contract to import 500,000 metric tons of rice from September to November this year, the National Food Authority (NFA) said yesterday.

The six – Louis Dreyfus Commodities Asia Pte. Ltd., Vietnam Southern Food Corp. (Vinafood 2), Vietnam Northern Food Corp. (Vinafood 1), LG International, ADM Rice Inc., and Olam International – procured bid documents at a pre-bid conference yesterday called by the NFA.

The NFA has allotted a total of P10.27 billion for the importation. The bids would be opened on Aug. 27.

The Philippines earlier imported 800,000 MT this year for use as buffer stock during the prevailing lean season.

The NFA has also approved the importation if necessary of another 500,000 MT this year.

Importers must supply well-milled white rice harvested from January to June. The commodity must be packed in polypropylene bags with NFA markings at 50 kilograms each as no container shipment shall be allowed.

The first 40 percent or 200,000 MT shall be delivered not later than Sept. 30 and the other 40 percent on or before Oct. 31. The remaining 20 percent of the total volume or 100,000 MT shall be delivered no later than Nov. 30.

President Aquino, in his last State of the Nation Address, said the government would not hesitate to flood the market with imported rice to crush the operations of opportunistic traders who hoarded rice stocks to manipulate prices.

Meanwhile, the average wholesale and retail prices of rice continued to rise in the first week of August even as palay prices remain constant, the Philippine Statistics Authority (PSA) reported yesterday.

The PSA reported the average price of palay in the first week of August was P21.53 per kilogram, the same as the previous week, but 20.35 percent higher than the price quoted in the same period last year.

Despite stable farmgate prices, average wholesale and retail prices of well-milled rice are likely to increase slightly.

The average wholesale price of P41.37 per kilogram was 0.32 percent higher than the previous week’s price and 16.83 percent more than the figure reported in the same period last year.

The average retail price of P43.92 per kilogram was 0.39 percent and 18.19 percent higher than in the previous week and in the same period last year.

The government hopes to bring down rice prices through increased importation as traders now hold most of the rice supply.

The NFA has also increased the daily rice releases to 10,000 MT from 6,000 MT through its accredited retailers nationwide.

The state-run grains procurement agency sells regular milled rice for P27 per kilogram and well-milled rice for 32 per kilogram to compete with commercial rice prices.