NFA prequalifies 102 firms for importation of 190,000-MT rice

The National Food Authority (NFA) has prequalified 102 firms to bring in 190,000 metric tons (MT) of duty-free rice to the country during the bidding for import rights held on Monday, March 19. The grains agency expects to earn P1.14 billion from the winning bidders’ services fees.

Gilberto Lauengco, special assistant to the NFA administrator said in a telephone interview yesterday that of the 107 firms which submitted bids for the import of 190,000 MT of rice, only 102 prequalified.

“Some were disqualified due to the absence of some necessary documents,” he said.

He declined to provide the total volume of offers of the prequalified firms but noted that most of them intended to bring in the maximum allowed volume of 10,000 MT.

“We are still in the post-qualification stage and results may be known in two to three weeks,” he said.

The NFA said in a statement yesterday that of the prequalified firms, only 19 firms with the highest bids are likely to be given the permit to import a maximum of 10,000 MT of rice.

Under the current arrangement, private firms can import rice at zero tariff in exchange for service fees. Bidding firms compete by offering service fees higher than the minimum floor price.

The service fee for the import of duty-free rice has been set by the NFA at a minimum floor price of P2 per kilogram (kg) of rice or P100 per bag of 50 kg of rice.

The average service fee at Monday’s bidding, the state grains agency said, was at P6.28 per kilo or P614 per bag.

The government has set the volume of rice imports at 500,000 MT this year.

The tender for the import rights of another 190,000 MT of rice for farmers’ groups is scheduled on Monday, March 19, while the government is considering purchasing the remaining 120,000 MT of rice under a government-to-government deal.

The NFA said earlier the rice imports for farmers’ groups can be brought in the country free of duty in exchange for service fees set at a minimum floor price of P2 per kg of rice or P100 per bag of 50 kg of rice.