FIVE PRIVATE bidders from across Southeast Asia will be awarded contracts by the National Food Authority (NFA) to import 500,000 metric tons (MT) of rice, with the auction finding takers even though bids were generally lower compared to the reference price of $447.88 quoted in the government-to-government auction earlier in the month.
Half of the auctioned volume is contracted to arrive by Dec. 31, ensuring the availability of large volumes of staple around the year-end holiday period.
The successful bidders were: Thai Capital Crops Co. Ltd, Myanmar’s Shwe Wah Yaung Agriculture Production Co., Singapore’s Olam International Ltd, Thailand’s Asia Golden Rice Co Ltd, and Vietnam’s Tan Long Group Joint Stock Co. The awarded volumes are subject to post-qualification processes, and formal awards will be made within the week.
Reuters reported that the rice to fill the Philippine order will be sourced from Vietnam, Thailand, Myanmar, India and Pakistan.
Thai Capital Crops was awarded a lot amounting to 45,000 metric tons for delivery to General Santos and Davao, after it bid $439.75 per MT.
Olam International was awarded 65,000 MT for delivery to La Union after bidding $429.80 per MT. It also won a lot of 40,000 MT for delivery to Batangas after bidding $425.80 per MT; 30,000 MT for delivery to Tabaco, Albay following a bid of $432.10 per MT; and 75,000 MT for delivery to Manila after bidding $434 per MT.
Tan Long Group was awarded a lot of 118,000 MT for delivery to Subic at $459 per MT.
Asia Golden Rice was awarded a lot of 54,000 MT for delivery to Cebu and Tacloban at $458 per MT; and a further 54,000 MT for delivery to Zamboanga, Cagayan de Oro and Surigao at $439.75 per MT.
Shwe Wah was awarded a lot of 28,000 MT for delivery to Iloilo and Bacolod after bidding $418.65 per MT.
Judy Carol L. Dansal, NFA Deputy Administrator for Marketing Operations, told reporters that the delivery deadlines for half the volume is before the end of the year.
“The terms of reference have schedules of 250,000 MT arriving not later than Dec. 31, and the other 250,000 arriving in January,” Ms. Dansal said.
The 500,000 MT forms part of the 750,000 MT authorized for importation by the NFA in 2018.
A government-to-government auction of up to 250,000 MT has awarded only 43,000 MT. — Reicelene Joy N. Ignacio