Billion Thailand, Vietnam split 750,000-MT rice imports

Total cost placed at

As part of the country’s preparation for what could be the worst El Niño to hit the Philippines since 1997 to 1998, the government has secured as much as 750,000 metric tons (MT) of rice imports for 14.87 billion through a new state to state deal with Thailand and Vietnam.

The National Food Authority (NFA) concluded yesterday the bidding for the importation of 250,000 MT of well-milled rice with 25 percent brokens for this year and 500,000 MT of the same rice variety for next year. The rice variety was priced at US$426.83 per MT.

Only Thailand and Vietnam participated in the bidding, which was led by NFA’s Committee on Governmentto-Government Procurement (CGGP) yesterday in Quezon City.

Initially, both governments didn’t meet the reference price set by NFA but they were given a chance to revise their offers.

Vietnam eventually won the bidding after deciding to sell 450,000 MT of rice for US$191.97 million. Its offer price was set at US$426.60 per MT.

In order to complete the 750,000 MT requirement of the government, Thailand were given a chance to match the price set by Vietnam for the remaining 300,000 MT.

Thailand then matched the offer price of the other government and agreed to sell 300,000 MT of rice imports for US$127.98 million.

The first set of rice imports or the 125,000 MT will be delivered in November, while the next 125,000 MT is due for delivery by the end of December.

For next year’s shipments, the additional 370,000 MT will be divided in two parts and will be brought to the country by the end of January and February, while remaining 150,000 MT will be delivered by the end of March.

"We should expect a notice of award in the next three days for [this G to G procurement]," NFA-CGGP vice chairperson Patricia Galang-De Jesus said after the event.

Inter-agency Food Security Committee (FSC), chaired by the National Economic and Development Authority, is the one that gives NFA the authority to proceed with the importation.

“FSC recommendation is a result of the assessment made by an Interagency El Niño Task Force on the impact of the El Niño in the local rice production,” a statement said.

FSC earlier said “there is no better option than being prepared” against impacts of El Niño.

El Niño is predicted to worsen beginning October this year and will last until May 2016.