At least 21 companies from various Asian countries are expected to participate in the open tender bidding today, May 22, for the supply of 250,000 metric tons of white long grain 25 percent broken rice for the National Food Authority as the agency prepares food security stocks for the coming lean months.
The Terms of Reference for this open tender importation initially specified that supply requirement is 200,000 MT of 25 percent broken rice and 50,000 MT of 15 percent broken rice. But this was revised, per advice of the NFA Council, via a Bid Bulletin issued May 15, to amend the required supply to 250,000 MT of 25 percent broken rice. Consequently, the Approved Budget for the Contract was revised from P6.52 to P6.502 million or a reduction of P19.7 million.
A total of 18 suppliers initially bought bid documents and 16 of them attended the pre-bidding conference held last May 8.
As of May 21, three more suppliers had bought bid documents.
Interested suppliers can still buy bid documents until 9:30 a.m. (on May 22) and participate in the bidding. Opening of the Bids will be at 10 am on the same day.
The NFA said the expected arrival of imported rice this month will immediately make its presence in the market with low-priced rice at P27 and P32 per kilo.
This is expected to arrest the continuous increase in rice prices and help low-income and poor families cope better with their daily expenses.
But to ensure that imported supply will be fresh stocks, the TOR specifies that the rice should be “not more than four months old from the date of milling and harvested during the period November 2017 onwards only.” Mixing of freshly milled rice with aged rice (more than four months) shall not be allowed. And stocks should not be powdery, and free from sack-like odor and insect infestation.
The total volume was divided into 7 lots with varying quantities and discharge ports across the country. Prospective bidders may bid for all or any of the lots.
During the opening of bids, all offerors are required to submit their price offer in US$/MT, on the basis of Cost, Insurance and Freight (CIF), Delivered at Place (DAP) Free on Warehouse (FOW) up to the stockpile of NFA designated receiving warehouses. The total price offer shall be the basis of payment of the awarded import volume.
Opening of the bids and award of the contract to the bidder with the lowest calculated responsive bid shall be for all lots or on a per lot basis. Rice must be shipped in break bulk, not in containers.
The delivery ports include: Poro Pt, La Union; Batangas; Subic; Tabaco, Iloilo, Bacolod, Cebu, Tacloban, Zamboanga, Cagayan de Oro, Surigao, Gen. Santos City, Davao City and Manila.
The imporatation of rice, according to the NFA, is part of the policy and operational directives delivered by NFA administrator Jason Aquino during a meeting with the agency’s Regional Directors recently.
The expected arrivals are part of the 250,000 metric tons (MT) contracted with Thailand and Vietnam under a government-to-government procurement scheme, the fastest way to replenish NFA buffer stocks that had been depleted to a very low level.
Rice is the staple food of 85% of Filipinos. Poor families spend more than 60% of their budget on food, of which almost 20% is rice.
Aquino also instructed NFA field officials to further intensify market monitoring and enforcement to “ensure that rice for the poor reaches the poor.”
“With the expected arrival of fresh stocks for our food security and stabilization functions, the public will be watching us on how we can effectively stabilize, and possibly pull down rice prices,” Aquino told NFA field executives.
He also said that with high projections on the inflationary effects of the TRAIN Law, the agency can help mitigate these effects by ensuring that there is enough supply of cheap NFA rice in the markets.
Aquino said the NFA will continue to attune its plans to the agency’s role in the government’s pro-poor programs.
“The President is closely monitoring our country’s food security situation. We cannot afford to fail in this mandate,” he said.
He also admonished NFA officials to be conscious of their responsibilities as public servants. “Now that we’re back on track, we should continue to exercise good housekeeping and accountability. Rice is our basic staple and we should never allow any rice crisis to happen,” he said.
“When the imported NFA rice arrives, it should go directly to its intended beneficiaries: the poor, the marginalized, the victims of calamities, the isolated island provinces, and those who truly need government assistance for their daily sustenance,” Aquino said.