NFA dumps Thailand, Vietnam rice bids over price

The National Food Authority (NFA) will schedule a second bidding for 250,000 metric tons (MT) of rice imports next week after Thailand and Vietnam on Friday went beyond reference prices.

The state-run grains agency rejected Thailand’s initial offer to sell 120,000 MT of the staple with 25 percent broken rice grains, or “brokens,” at $530 (P27,541.45)/MT and Vietnam’s bid to sell 50,000 MT with 15 percent brokens at $532 (P27,645.38)/MT.

Bangkok then lowered its bidding price to $520 (P27,021.80)/MT, while Hanoi cut its own to $530 and offered 100,000 MT with 25 percent brokens for $521 (P27,073.77)/MT, which NFA also nixed.

The prices set by the agency were $483.63 (P25,131.83)/MT with 15 percent brokens and $474.18 (P24,640.76)/MT with 25 percent brokens.

The failed bidding was the third in NFA history and the first under the government-to-government (G2G) scheme.

The agency is now turning to local traders in supplying its retail outlets with cheaper rice, said NFA Deputy Administrator Judy Carol Dansal, who leads the special bids and awards committee, in a press conference.

She insisted that the NFA is not desperate in securing rice from other nations, saying “consumers are happy with the P39-per-kilo rice supplied by traders, who have committed to supply rice until the arrival of our buffer stock.”

Current NFA stock of the staple is still fewer than 100,000 bags.

The agency had alloted P6.1 billion to buy 250,000 MT of rice.

Of the total volume that NFA will import,

discount, it could have grown by more than 5%.

On top of focusing on discounts, lowering cost to sales and eliminating unnecessary expenses, opportunity cost should also be considered. Is the discount for prompt payment worth it despite not having enough working about 75,000 MT will be discharged in the Port of Manila; 25,000 MT each in Subic and Cebu; 20,000 MT in Tabaco; 19,000 MT in Batangas; 16,000 MT in Cagayan de Oro City; 15,000 MT in Davao City; 14,000 MT at Poro Point in La Union; 12,000 MT in Tacloban; 10,000 MT in General Santos City; 6,000 MT in Cagayan De Oro; 5,000 MT in Surigao City; and 4,000MT each in Iloilo and Bacolod.

The initial shipments are expected to arrive by end of May through Cebu, Davao, and Manila.

EIREENE JAIREE GOMEZ

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