NFA import deals face rebid as sellers hold out
THE National Food Authority (NFA) awarded only three rice import contracts on Thursday accounting for 47,000 metric tons (MT), a small fraction of the 250,000 MT it was authorized to order, as most of the 14 bidders made offers far above the agency’s reference price.
Thai Capital Crops Co. Ltd. was awarded 18,000 MT at $426.30 per MT to be landed in Batangas. Vietnam Southern Food Corp. (Vinafood II) won the bid for 15,000 MT at $427.68 MT per MT, to be landed in Tabaco, Albay; and Vietnam Northern Food Corp. (Vinafood I) obtained an order for 14,000 MT at $427.50 per MT to be landed in Iloilo and Bacolod.
NFA’s reference price was $428.18 per MT, while most offers were at $458 to $478.48.
According to NFA Deputy Administrator Judy Carol L. Dansal, the agency will rebid the remaining contracts, subject to discussions by the governing NFA Council.
“We have to report to the Council to address this. We need rice and we need to act immediately. We will have to rebid for the remaining volume,” Ms. Dansal told reporters.
The government has authorized the import of 750,000 MT of rice this year in three batches of 250,000 MT to help bring down rice prices and after typhoon Ompong (international name: Mangkhut) damaged rice-producing areas in Regions I to IV-A and the Cordillera Administrative region.
“It is not a failed bidding. It’s just that not all the volume was taken,” Ms. Dansal said.
The NFA was allocated a total of P6.1 billion to procure 250,000 metric tons of rice earlier this year but in April it rejected bids from Vietnam for 50,000 metric tons of the 15%-broken variety $540/MT, and Thailand for 120,000 MT of 25% brokens at $530/MT.
The NFA reference price was $483.63 for 15% brokens, and $474.18 for 25% brokens.
The rejection of bids depleted the NFA rice inventory, emboldening sellers of more expensive commercial rice. Subsidized NFA rice is typically sold to poorer consumers in order to keep their expenditure on food under control.
Meanwhile, Agriculture Secretary Emmanuel F. Piñol announced that the suggested retail price (SRP) scheme for rice will be implemented by Oct. 23.
Mr. Piñol said 15% brokens will be capped at P40; 25% brokens at P37; domestic regular-milled rice P39; domestic well-milled at P44. The price for so-called premium rice is still under discussion while special rice will have no SRP.
“We really have to rationalize the whole thing and it is really for the protection of the consumers,” Mr. Piñol said.
“There will be no more use of Sinandomeng, no more Dinorado, no more Super Angelica,” according to Mr. Piñol, referring to some names of rice varieties on sale.
An SRP on chicken and pork is also expected to be imposed, but remains under discussion.
“The standard will be farmgate price plus P70 for pork regular cut,” according to Chester Warren Y. Tan, chairman and president of the National Federation of Hog Farmers Inc (NFHFI), noting that the SRP for choice cuts will be determined on Friday.
“The implementation will follow after we agreed to one common SRP to regular cut and choice cut. DA and private sector will also have a meeting with DTI (Department of Trade and Industry) for finalization,” Mr. Tan added.
United Broiler Raisers Association (UBRA) President Elias Jose M. Inciong said: “Our position is farmgate plus P50. It may be implemented next week.”
Chicken farmgate prices currently range from P77 to P84. —