Agriculture

NFA wants more bidders for for 250,000 MT rice imports

July 13, 2017 | 7:20am

NFA wants more bidders for for 250,000 MT rice imports

According to NFA, previous G2P schemes several years ago had an average of 10 to 15 bidders. Philstar.com/file photo

MANILA, Philippines — The National Food Authority wants more bidders for the procurement of 250,000 metric tons (MT) of rice as part of the planned government-to-private sector (G2P) importation scheme.

During the pre-bidding conference Thursday, only 11 bidders bought bid documents for the the 250,000 MT (25 percent brokens, long grain white rice, well-milled) to be divided in eight lots.

Although the NFA did not set a target number of bidders to participate, the agency wants to have as many as possible.

"We have eight lots and 11 bidders. We are not saying that it is not enough but we would want to have more and to open up to many bidders as possible," NFA Special Assistant to the Administrator Rachel Miguel said.

"The very purpose of the NFA Council is for more private participation and that the volume will not be from a single supplier only," NFA deputy administrator Tomas Escarez added.

According to NFA, previous G2P schemes several years ago had an average of 10 to 15 bidders.

Of the 11 bidders, five are from Thailand: Ponglarp Co. Ltd., Thai Hua Co. Ltd., Capital Cereals Co. Ltd., Asia Golden Rice Co. Ltd. and Thai Granlux International Inc.

Vietnam has four: Vietnam Northern Food Corp., Vietnam Southern Food Corp. II, Gentraco, and Gia International Corp.

The remaining bidders are Olam International Ltd. from Singapore and Louis Dreyfus Co. from the Netherlands.

The NFA will still accept bidders until the opening of bid documents on July 25.

Of the total import volume, 100,000 MT will be discharged in the port of Manila, 30,000 MT in Batangas, 25,000 MT each in Tabaco, Cebu, Cagayan de Oro, 20,000 MT in Poro Pt. in La Union, 15,000 MT in Davao and 10,000 MT in General Santos City.

The imported volume is expected to arrive starting August until September, the period of the lean season, and the agency has allotted P5.6 billion for the procurement.

Current NFA inventory can only last for five days compared to its mandated buffer stock of having reserves good for at least 15 days at any given time.

Starting this month, which marks the onset of the lean season for rice, the NFA must have at least a 30-day buffer stock to meet the requirements of victims of calamities and emergencies.

"We continue to monitor the supply and we are ready with any eventuality. Nothing to worry, because in the next three weeks, the importation will arrive and we will also be opening the MAV (minimum access volume)," Escarez said.

Based on computations, the 250,000 MT can only cover for seven days.

Following the 32,000-MT daily consumption of the country, at least 544,000 MT is needed to maintain the agency’s buffer stocking mandate.

Escarez said the NFA Council is set to meet next week to prepare the documents for the approval of the terms of reference for the 805,000 MT to be shouldered by the private sector.

Meanwhile, prospective bidders for the 250,000 MT may bid for any of the lots provided that the bid must be the minimum or maximum of the imported rice allocated per lot. The maximum quantity to be awarded per supplier must not be higher than 50,000 MT.

NFA said rice must be shipped in break bulk where packing shall be in 50 kilograms net each in woven polypropylene bags suitable for rice export with NFA markings, designs and specifications.

Winning bidders shall deliver the goods free of obligations and expenses of NFA up to NFA’s designated warehouses.