The National Food Authority (NFA) said on Monday that it has awarded to Thailand and Vietnam the contract to supply 500,000 metric tons (MT) of rice programmed for purchase by the government this year to beef up the country’s buffer stock during the lean months.
NFA said Vietnam will supply 300,000 MT of rice, while Thailand will deliver 200,000 MT. The purchase was made under a government-to-government scheme.
“The government-to-government scheme is covered by a memorandum of agreement between the Philippines and these two countries,” the state-run food agency said in a statement.
The rice contracted by NFA is 250,000 MT long grain white rice, well milled with 15-percent brokens and another 250,000 MT with 25- percent brokens.
Thailand offered to supply 15- percent broken rice for $441 per MT, while Vietnam’s offer was $442.50.
Since Thailand offered to supply only 100,000 MT, Vietnam agreed to match the price of Thailand to supply the remaining 150,000 MT.
For 25-percent brokens, Thailand’s price offer was $421 per MT, while Vietnam was $424.50.
“However, Thailand’s offer is only for 100,000 MT, Vietnam agreed to match the price of Thailand to supply the balance of 150,000 MT,” NFA said.
Half of the shipment is expected to be delivered not later than March 31, while the remaining balance should be delivered not later than April 30. NFA said the shipment will be delivered “door-to-door” to the agency’s designated warehouses under the cost insurance freight-delivered at place terms.
The Philippines usually imports rice to beef up the government’s buffer stock or to plug the shortfall in output caused by natural disasters, such as strong typhoons. The Philippines is usually visited by strong typhoons during the months of July, August and September.
During the lean months for palay, the NFA is mandated to maintain a buffer stock equivalent to 30 days of the country’s rice requirement.