PH gets rice supply offers

The governments of Thailand and Vietnam on Tuesday submitted offers for the delivery of 500,000 metric tons of milled rice meant to top up the National Food Authority’s buffer stock.

Bangkok offered $475 per MT while Hanoi offered $462.25 MT, but NFA director Rex C. Estoperez said other details of the bids were still being evaluated.

Cambodia, which also has an agreement with Malacañang on the supply of rice, did not submit its bid.

“This is a meticulous undertaking (the evaluation),” Estoperez said. “We want to make sure that every detail conforms with the terms and conditions of the bidding.”

He said the prices quoted were “free on warehouse,” meaning that costs related to spillage, damage, and cargo handling are already covered.

Estoperez said an initial cargo was expected to arrive before the end of this year.

Just how much the first cargo would be is a question of logistics and resources.

Considering that 500,000 MT translates to 10 million sacks of 50 kilograms each, a realistic cargo size depends on the ability of ports to accommodate the shipment based on the traffic situation at the pier.

At the runup to the holiday season, ship traffic is expected to get heavier.

“We want the entire volume to have been landed by February, before the summer crop is harvested,” he said. “Otherwise, the shipments would affect prices of (homegrown rice).”