By Lilybeth G. Ison
MANILA, Nov. 26 (PNA) — The National Food Authority (NFA) on Tuesday said Vietnam submitted the lowest price to supply 500,000 metric tons (MT) or about 10 million bags of rice to the Philippines that will augment the country’s buffer stock.
NFA Administrator Orlan Calayag said Vietnam has offered USD 462.25 per ton, with a first shipment to arrive before the year ends and the entire volume within three months or until February 2014.
Thailand, on the other hand, had offered USD 475 per ton of rice, while Cambodia, the third country allowed to participate in the bidding, failed to submit an offer.
“Thailand offered USD 475 per MT. Ang Vietnam naman USD 462.25 per MT. This is lower than the world market price,” said Calayag in an interview with reporters.
The indicative world market price for rice is at USD 375 per MT.
He said both Vietnam and Thailand offered to supply the 25 percent broken, long grain, well-milled rice variety.
Calayag said both Vietnam and Thailand qualified in the bidding. “Ang tinitingnan lang ngayon ay yung capability kung madadala agad dahil malaki ang volume na pinag-uusapan dito.”
The NFA believes that Vietnam’s terms were acceptable.
Calayag said the transaction will be a government-to-government basis to fast-track the delivery of rice imports.
“Ang delivery natin ay expected na ang initial should be coming before the end of the year, the soonest time possible. Inaayos nila ngayon, nag-uusap-usap sila ngayon sa volume na realistic. Unang-una, ngayon kasi maraming parating na barko, so may traffic sa pier,” he said.
Calayag noted the 500,000 MT the NFA is buying now will lift the country’s stocks back to a “comfortable level.”
As of Nov. 25, the NFA’s rice inventory was good for 13 days, which is considered below the 15-day buffer stock the agency aims to keep.
The NFA will announce in two to three days the winning bidder for the 500,000 MT.
The Philippines had earlier imported some 205,000 MT of rice. (PNA)