The Market Monitor Minding the Nation's Business
The National Food Authority (NFA) approved on September 17 the awarding of contract for the supply of 750,000 metric tons (MT) of long-grain white rice 25 percent brokens to Thailand and Vietnam, based on the results of the government-to-government procurement.
The importation is intended to beef up government inventory in preparation for the impact of the El Niño phenomenon.
Drought due to El Niño is predicted to intensify beginning October and will last until May next year.
The NFA said the reference price set was $426.83 per metric ton, which only Thailand and Vietnam were able to meet.
Cambodia was also invited but did not participate in the bid. The three countries have an existing rice supply agreement with the Philippines.
Thailand offered 300,000 metric tons (MT) at $430 per MT, while Vietnam offered 750,000 MT at $431.25 per MT, which are both higher than the reference price.
In their revised offer, Thailand offered to supply 300,000 MT at $426.83 per MT, while Vietnam offered to supply 450,000 MT at $426.60 per MT.
Thailand agreed to match the offer of Vietnam at $426.60 per MT, according to the NFA.
The NFA said the price offered included the cost of freight-delivered at place in NFA-designated warehouses in the country.
The delivery of shipment shall be as follows: 125,000 MT not later than November 30; 125,000 MT not later than December 31; 175,000 MT not later than January 31 next year; 175,000MT not later than February 29, 2016; and 150,000 MT not later than March 31, 2016.
The signing of the supply contracts was witnessed by representatives from the Commission on Audit, Office of the Ombudsman, Bangko Sentral ng Pilipinas, NFA Council, and members of the media.