Thailand, Vietnam win bid to supply 250,000 MT of rice

Thailand, Vietnam win bid to supply 250,000 MT of rice

MANILA — Thailand and Vietnam won a bid for the supply of combined 250,000 metric tons (MT) of rice under a government-to-government (G2G) tender on Wednesday, after the latter agreed to match the lowest revised price offered by Thailand in order to be able to supply majority of the requirement.

The National Food Authority (NFA) G2G procurement committee awarded the supply of 100,000 MT to Kingdom of Thailand’s Department of Foreign Trade, Ministry of Commerce; while the 150,000 MT was given to Socialist Republic of Vietnam–Vinafood II.

This, after Thailand offered the best revised bid at US$ 424.85 per MT for the supply of 100,000 MT, while Vietnam lowered its price offer from US$ 425 per MT to US$ 424.85 for the 250,000 MT.

The two bidders lowered their rice bid prices after the NFA rejected earlier supply bids which were higher than the government’s reference price of US$ 425 per MT.

“We are happy that we are able to win this bid. We want to also help the Philippines (meet its rice requirements) through supply of rice. We’ve been exporting for many years already to the Philippines maybe since 1980s,” said Malou de Leon, marketing officer at Royal Thai Embassy’s Office of Commercial Affairs.

In an interview, NFA Spokesperson Director Angel Imperial Jr. said the 250,000 MT of rice is good for eight-day consumption of the country. This is the first rice import deal for the year.

“That’s for buffer stock of the government because NFA is mandated to have at least 15-day buffer stock at any given time of the year. So that we have provision in case there are sudden calamities just like what happened during (Super Typhoon) Yolanda, Bohol earthquake and Zamboanga siege that we need sizable volume for affected people,” he said.

Imperial said the country’s rice inventory stood at 13.5 million bags as of Aug. 24, which was good for 21 days.

He added that 100,000 MT or 40 percent of the 250,000 MT volume awarded should be delivered until Sept. 30, while the balance of 150,000 MT not later than Oct. 31.

In 2015, the Philippines imported one million metric tons of rice also from Thailand and Vietnam. Leslie Venzon/PNA/northboundasia.com