THE National Food Authority (NFA) offered a substantially higher reference price and made a full award of 203,000 metric tons of rice in government-to-government supply deals with Vietnam and Thailand, all for December delivery.
Vietnam will supply a total of 123,000 MT of rice at $469.80 per MT, while Thailand will supply a total of 80,000 MT at $469.80 per MT. The auction was for well-milled long grain white rice of the 25% brokens grade.
All of the shipments have a Dec. 31 deadline, with some lots expected to arrive before Dec. 15, to help relieve supply pressures before the yearend holidays.
The NFA had set a reference price of $470 per MT. In the last auction for the 203,000 MT on Nov. 13 it offered $447.88, substantially lower than the suppliers’ prices in the $480 range.
The 203,000 MT represents the unawarded portion of an initial volume of 250,000 MT bid out in October and re-bid earlier this month.
The NFA was authorized by its governing NFA Council to import 750,000 MT this year, divided into three equal shipments of 250,000, with the grains agency under pressure to ensure ample rice supply for the holidays with delivery schedules coming up against the yearend rush.
From the Tuesday auction, Vietnam is to deliver 40,000 MT not later than Dec. 15, and the remaining 83,000 MT not later than Dec. 31.
Thailand, meanwhile, committed to deliver 10,000 MT not later than Dec. 15, and the remaining 70,000 MT not later than Dec. 31.
Initially, Vietnam offered to supply 170,000 MT at $470 per MT. However, it was undercut by a Thai offer for 80,000 MT at $469.80 per MT, at which point the NFA asked representatives from Vietnam to adjust its offer.
Representatives from Vietnam matched the Thai price while lowering the volume to 123,000 MT.
Penalties will apply to suppliers for failure to comply with the delivery dates, according to NFA.
“There are only a number of days allowed for delay, before penalties kick in,” NFA Administrative Assistant and chairwoman of the agency’s committee on G2G procurement Maria Mercedes G. Yacapin told reporters.
Ms. Yacapin also said that the NFA’s local palay procurement is proceeding well.
“Our palay procurement is good. Right now, we have purchased 800,000 bags, cumulative year-to-date,” Ms. Yacapin said.
Of the 750,000 MT authorized for import, the remaining 500,000 MT was successfully auctioned off to private importers on Nov. 20. — Reicelene Joy N. Ignacio