March 9, 2015

The National Food Authority Council approves in a special meeting on March 3, 2015 the awarding of contract for the supply of 250,000 MT of long grain white rice 25% brokens, and 250,000 MT 15% brokens, to Thailand and Vietnam, respectively.

The awarding is based on the Government-to-Government Procurement held on February 27, 2015. The importation is intended for the country’s buffer stock for the coming leans months of July-September as well as part of the strategic rice reserve during calamities, natural or man-made.

  • Offered price for the supply of 25% brokens was US$421.00 per metric ton and US$441.00 per metric ton for 15% brokens. The offered price for the 25% brokens at US$ 421.00 per metric ton is 11.4% is lower than the price offer of US$475.00 in last year’s government-to-government purchase of 500,000 metric tons held in September, 2014. Both offers are also below reference or world prices.
  • Thailand and Vietnam who have an existing rice supply agreement with the Philippines participated in the G-to-G procurement. Cambodia who has also an existing international agreement did not submit its offer due to prior commitments.
  • Thailand through its Department of Foreign Trade-Ministry of Commerce shall supply 100,000 metric tons 25% brokens and 100,000 metric tons 15% brokens while Vietnam Southern Food Corporation shall supply the remaining 150,000 metric tons 25% brokens and 150,000 metric tons 15% brokens.
  • 50% of the shipment is expected to arrive not later than March 31, 2015 while the remaining balance is expected to arrive not later than April 30, 2015.
  • The price offered included the cost of freight-delivered at place (CIF-DAP) in NFA designated warehouses in the country.