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Thursday, March 28, 2024

NFA draws cheaper bids on rice imports

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The National Food Authority on Tuesday drew lower bids on 250,000 metric tons of imported rice aimed at boosting the country’s buffer stocks.

The NFA said the Philippines will likely save P400 million for the rice imports after earlier allotting P5.6 billion for the shipment. Tuesday’s auction lured bids totaling $104.8 million or P5.2 billion.

The NFA said 21 companies bought bid documents for the open tender but only 18 were present during the auction. Two did not drop their bid offers while one company from Hong Kong failed to submit contracts document.

“Singsong (H.K.) Limited will be given three days to submit the document. After we evaluate, we will open their bid offers. That is the process,” said NFA bids and awards committee chairman Tomas Escarez.

The NFA earlier said 250,000 MT of rice imports were divided into eight lots: six lots of 25,000 MT each and two lots of 50,000 MT each. A bidder can bid for a maximum of 50,000 MT only.

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The NFA set the reference price for the importation at $451.08 per metric ton based on the foreign exchange rate of $1.00 to P50.

For Lot 1 (50,000 MT) which will be discharged in La Union and Batangas, Olam International Limited, the lowest bidder, offered to supply $413.80 per metric ton.

The NFA said Tan Long Group Joint Stock Company offered to supply the volume for $141 and $409 per metric ton for lots 2 and 3, respectively, which will be discharged in Manila.

Other lowest bidders for the remaining lots include Hiep Loi Food Jsc for Lot 4 (25,000 MT) at $425.90 per MT; Gia International Corp. for Lots 5 (25,000 MT) and 6 (25,000 MT) at $ 421.64 per MT; Capital Cereals Co. Ltd. for Lot 7 (15,000 MT) at $431.7 per metric ton; and Vietnam Southern Food Corp. for Lot 8 (50,000 MT) at $424.25 per metric ton.

All deliveries will be paid by NFA within 15 days from the receipt of the complete set of original documents from the supplier.

The NFA said rice deliveries should be staggered from August to September, with 120,000 MT expected to arrive in August and 130,000 MT in September.

Escarez said those who would win the bids would be subjected to post-qualification evaluation on July 27 to 28. If bidders qualify, the notice of award will be issued of July 31 followed by a notice to proceed on August 3.

“The remaining budget which will not be used for the importation will go back to the fund of the NFA,” Escarez said.

The NFA earlier said 19 companies from Vietnam, Thailand, Singapore and Myanmar have signified interest to supply 250,000 metric tons of rice to the Philippines.

The government auctioned the volume through an open tender and required 25 percent broken, well-milled, long grain white rice.

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