Thai, S’pore firms bag deal to supply 250 K MT of rice

State-run National Food Authority (NFA) has awarded the supply contract for 250,000 metric tons (MT) of rice to four companies from Thailand and one from Singapore to boost the country’s limited buffer stock.

NFA recently issued the notice of award to the suppliers who will be required to post a performance bond in the next seven days.

Preparation of contracts will also be done during the sevenday period while the issuance of notice to proceed will be given after the posting of performance bond and the signing of contracts.

The Thai companies are Thai Hua Co. Ltd. for 75,000 MT, Capital Cereals (43,000 MT), Asia Golden Rice (58,500 MT), and Ponglarp (36,000 MT).

Singapore-based Olam International Ltd., meanwhile, will supply the remaining 37,500 MT of 25 percent brokens, wellmilled long grains white rice.

The fresh stocks will form part of NFA’s food security stocks during the lean months of July to September.

Bulk of the volume or 200,000 MT are scheduled to arrive in the country not later than July 31, while the remaining 50,000 MT should be delivered not later than Aug. 31.

The total volume was divided into seven lots with corresponding discharge ports in Luzon, Visayas and Mindanao to facilitate distribution to the markets and intended beneficiaries.

Designated discharge ports are Poro Pt. in La Union, Batangas, Subic, Tabaco, Iloilo, Bacolod, Cebu, Tacloban, Zamboanga, Cagayan de Oro, Surigao, General Santos City, Davao City and Manila.

Reference price for the importation was set at $498.25 per MT based on the foreign exchange rate of P52.2 per dollar.

The total amount of all bidders reached $115.85 million or P6.04 billion, resulting in P500 million in savings for the government. NFA has allotted a total of P6.5 billion for procurement of the volume.

The grain agency said there are no plans yet for further rice imports as it prioritizes the immediate presence of NFA rice in markets to pull down and stabilize prices.