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Vietnam, Thailand in PH rice deal

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Vietnam, Thailand in PH rice deal

/ 03:36 PM September 05, 2016
Viet Nam News PHOTO

Viet Nam News PHOTO

Thailand and Vietnam have won deals to supply a total of 250,000 tons of rice to the Philippines after the two countries reduced their selling prices to suit Manila’s budget.

The tender has been a part of the state’s plans to import up to one million tonnes of rice to fulfil the country’s food demand for next year at low prices.

Officials at the Philippines’ National Food Authority (NFA) said Vietnam will supply 150,000 tons of 25 percent broken rice at US$424.85 per ton, while Thailand will supply the remaining 100,000 tons at the same price. The price includes freight, insurance and other costs.

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The NFA initially rejected higher bids from both countries, asking them to submit revised offers in line with its reference price of $425 per ton.

Rice production in the Philippines has been affected by the severe weather, with an average of 20 typhoons passing through the country each year, which is why the country has had to import rice to meet the food demands of its 100 million people.

NFA spokesman Angel Imperial affirmed that Philippines needed a large amount of imported rice for its stocks and to prepare for any emergency situation.

Imperial said the agency’s buffer stock as of August 24 was good for only 21 days of domestic demand, below the minimum 30 days required during the lean harvest season from July to September.

Imports last year reached some 1.8 million tons, lower than the record volume of 2.45 million tons in 2010.

Despite the tender by the Philippines, one of the world’s top rice buyers, Vietnam’s benchmark five percent broken rice prices fell this week to $345-$360 per ton on a free-on-board basis, the lowest in 11 months./rga

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TAGS: Business, Global Nation, Philippines, rice imports, Thailand, Vietnam
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