Philippines to import rice early next year
Posted on November 7th, 2009
To cover the shortage of rice which was caused by the recent string of typhoons that hit the country, the Philippine government has decided to import rice. Two companies, Daewoo International Corp. of South Korea, and Vietnam Southern Food Corp. (Vinafood) of Vietnam, have offered the lowest bids for 275,500 tons (250,000 metric tons) to the National Food Authority (NFA), according to spokesperson Rex Estoperes.
The Philippines is one of the world’s biggest rice importer. Last year, the government bought a record 2.54 million tons (2.3 million metric tons) of rice to plug a 10% domestic production gap.
In the last two months unfortunately, typhoons that hit country has caused the lost of at least 1.3 million tons of rice.
In their proposals, Daewoo will provide the country 110,200 tons (100,000 metric tons) at $468.50 metric ton (1.1 tons), while the remaining 165,300 tons (150,000 metric tons) will be supplied by Vinafoods at $480 per metric ton. Daewoo will make its deliveries from January to April, with the first 20% by January 25, Vinafood on the other hand, will complete its shipments in January.
The two have been awarded by the NFA the right to supply the total 250,000 metric tons of rice to the Philippines. Vinafood will source its rice from Vietnam, while Daewoo will get its supply from Vietnam and Thailand.
According to NFA Administrator Jessup P. Navarro, the agency needs to import rice in order to improve their rice stock position at the beginning of the year, that is why they are making placing an early importation. “We have to take a proactive stance to maintain the supply and price stability of the basic staple,” Navarro said.
The bidding for the importation of rice was held last November 4 and was participated by a total of 14 international rice suppliers.
These rice imports will serve as the government’s additional food security buffer to maintain a very safe inventory level.
