Thailand and Vietnam on Wednesday bagged contracts to supply a combined 250,000 metric tons of rice to the Philippines during a tender aimed at boost ing the country’s buffer stock for the lean season.
Both countries revised their offers, after state-run National Food Authority rejected their initial offers, which exceeded the government’s reference price of $425 per metric ton.
Thailand, to meet NFA’s price guidance, offered to supply 100,000 MT of rice at $424.85 a ton, while Vietnam agreed to provide the remaining 150,000 MT at the same price.
NFA earlier invited Thailand and Vietnam to supply 250,000 MT of 25 percent brokens well milled-long grain white rice under a government-to-government procurement mode.
Vietnam through Vinafood II initially offered to supply the entire volume at $432.75 per metric ton while Thailand’s Department of Foreign Trade offered to ship 100,000 metric tons at $432 per metric ton.
NFA bids and awards committee chairman Ludovico Jarina said, however, that both offers were rejected, because they were above the government’s reference price of $425 per ton. Both countries were given until 3 in the afternoon to revise their offers.
Thailand’s second offer was to ship 100,000 MT at $ 424.25 per metric ton and Vietnam offered to ship the entire volume at $425 per metric ton.
“Under the terms of reference, there is a need to match the price of the lowest bidder,” Jarina said.
Vietnam agreed to match the offer of Thailand for the remaining 150,000 metric tons.
NFA earlier said the first 100,000 MT of rice imports would arrive not later than Sept. 30, while the remaining volume would arrive not later than Oct. 31, 2016.
Meanwhile, NFA said the proposal to abolish or reduce NFA to merely regulatory functions hinged on the question of whether or not the government was ready to let go of its responsibility to ensure the national food security.
NFA made the statement after the Cabinet recommend to President Rodrigo Duterte the abolition of NFA’s commercial functions including rice importation.
NFA finance managers said the reported P165 billion debt of the grain agency was trimmed down to P158.9 billion as of Aug. 31, 2016.
The agency said the accumulated debt represented the coststhe agency incurred in fulfilling its mandate of stabilizing the price and supply of rice at both the farm-gate and consumer level.
“The NFA, on behalf of the national government, has to buy high from the farmers for them to get a fair return on their palay production investment, and sell low to consumers to ensure that those who are short on funds will have a chance to buy good quality rice at an affordable price,” NFA said.