Philippines allots $236 million for extra rice imports
The Philippine government has allotted a budget of 10.3 billion pesos ($236 million) to import half…The Philippine government has allotted a budget of 10.3 billion pesos ($236 million) to import half a million tonnes of rice via a tender rescheduled for later this month, according to a bid invitation published over the weekend.
The state grains procurement agency National Food Authority (NFA) reset the tender date to Aug. 27 from Aug. 12 due to time constraint, NFA Spokesman Rex Estoperez told Reuters.
Seeking to boost thin stockpiles following recent typhoons and spikes in local retail prices of the grain, the government decided to import more rice with purchases in the second half of the year, possibly reaching as much as 1 million tonnes.
Total rice purchases this year by the Philippines could exceed 2 million tonnes, its biggest in four years. President Benigno Aquino announced on July 28 that the NFA has been authorized to import an additional 500,000 tonnes for emergency needs later this year.
With the buying spree, the Philippines is on track to become the world's third biggest buyer of rice, according to estimates by the U.S. Department of Agriculture, up from the No. 8 spot it held last year.
The tender later this month is open to all rice brokers, dealers and exporters, Estoperez said, including those in Vietnam, the country's traditional supplier, and Thailand.
The Thai government, which aims to sell 3 to 4 million tonnes of rice from state warehouse in government deals within six months, plans to hold talks with several buyers in Asia, including the Philippines.
Vietnamese rice jumped last week to the highest price level in 2-1/2 years on demand from China, making it uncompetitive with Thai grades which were set to fall as the government continued to offload state stocks on the world market.
The NFA is seeking to import 25 percent broken, long grain, well milled white rice variety for delivery in three batches between September and November.
The first shipment of 200,000 tonnes should arrive not later than Sept. 30, followed by another batch of the same volume not later than Oct. 31. The final shipment of 100,000 tonnes should arrive not later than Nov. 30.
Bidders will be offered five lots of 100,000 tonnes each.
The Southeast Asia country has shifted away from setting a target date for its plan to be completely self-sufficient in the production of rice, after missing its end-2013 goal, keeping its doors open to imports in the coming years.