Private firms bag deal to supply 500K tons of rice

The National Food Authority (NFA) was finally able to award 500,000 metric tons (MT) of rice imports to the private sector on Tuesday after its policy-making body decided to increase its reference price.

From a reference price of $447.88 a ton, which was described by traders who joined previous biddings as “too low,” the NFA Council increased it to $470 a ton to avoid a third failed bidding.

Of the 16 companies that participated in the open tender bidding, 14 were able to bring bid documents while five were able to meet the agency’s terms.

Olam International, Tan Long Group Joint Stock Co., Shwe Wah Yaung Agriculture Production Co. Ltd., Asia Golden Rice Co. Ltd. and Thai Capital Crops Co. Ltd. won the bid to supply the country with 500,000 MT of 25-percent brokens, well-milled, long grain white rice.

Rice shipments are expected to be coursed through the ports of La Union, Subic, Batangas, Bacolod, Cebu, Cagayan de Oro, Bicol, General Santos City and Manila.

NFA Deputy Administrator Judy Carol Dansal said the notice of awards would be given to the companies within the week.

Meanwhile, the failed government-to-government (G2G) procurement is expected to be set anytime soon following the success of the latest bidding.

Despite the delays in the importation process, Agriculture Secretary Emmanuel Piñol, who heads the NFA Council, said the agency would stick to its current timeline for the arrival of the rice shipments.

Under the agency’s terms of reference, rice imports under the G2G scheme must arrive in the country before the end of the year while shipments under the open tender scheme must reach the country’s ports by early 2019.