MANILA, Philippines — Thailand will likely supply the bulk of the 250,000 metric tons (MT) of rice as part of the open tender importation scheme to boost the country’s depleted buffer stock, with government saving about P500 million in the process.
During the bidding Tuesday, state-run National Food Authority (NFA) announced that four companies from Thailand and one from Singapore had the lowest bids for the procurement of the 250,000 MT out of the 13 companies that passed the eligibility to bid.
There were 21 companies that actually bought bid documents, but only 17 submitted their offers during the bidding process while four failed due to lack of specific documents.
The rice imports at 25 percent brokens, well-milled long grains white rice were divided into seven lots where a bidder can bid the maximum volume per lot.
Reference price for the importation was set at $498.25 per MT based on the foreign exchange rate of P52.2 per dollar.
“We are satisfied because there are a lot who participated and we had different prices. We believe that this bidding is successful,” Committee on Government-to-Private Procurement chairperson and NFA deputy administrator Judy Carol Dansal said.
Current global market trend showed that prices in Thailand have decreased, while those in Vietnam are on an upward trend, which explained the lower bid offers from Thailand.
For the first lot of 37,500 MT in La Union and Batangas ports, Singaporean company Olam International Ltd. had the lowest offer of $463.10 per MT for a total of $17.36 million.
Thai company Asia Golden Rice Co. Ltd. bid and had the lowest offer for lots 2 and 3 at $461.75 per MT and $465.04 per MT, respectively.
Lot 2 is in Subic with 25,000 MT, while lot 3 is in Tabaco, Iloilo and Bacolod for a total of 33,500 MT.
Another Thai company, Ponglarp Co. Ltd., submitted the lowest bid for 36,000 MT lot 4 in Cebu and Tacloban at a price of $463.50 per MT.
For lots 5 and 6, Thailand-based Capital Cereals Co. Ltd. offered the lowest price at $464.50 per MT and $463.45 per MT, respectively.
Lot 5 has a volume of 18,000 MT to be discharged in Zamboanga City, Cagayan de Oro, and Surigao, while lot 6 is in Gen. Santos and Davao for 25,000 MT.
Thai Hua Co. Ltd., meanwhile, submitted the lowest for lot 7 in Manila at $463.10 per MT for a total of 75,000 MT.
The total amount of all bidders reached P$115.85 million or P6.04 billion, saving the government around P500 million.
The NFA has allotted a total of P6.5 billion for the procurement.
“The savings will go back to the funds of the NFA to be used for our local palay procurement,” Dansal said.
With regards to the failed bidding of Meskay & Femtee Trading Co. Ltd., Orion Pinkl Pte. Ltd. and ADM Asia Pacific Trading Pte. Ltd., Dansal said the companies would be given three days to submit their justification but it would not affect the calendar of activities.
NFA said winning bidders shall still be subjected to post-qualification evaluation in the next few days, while of notice of award and notice to proceed shall be issued until next week.
The imported volume is expected to arrive not later than July 31 for the first 200,000 MT and not later than Aug. 31 for the remaining 50,000 MT.
The 250,000 MT can cover seven days of buffer stock.
NFA said the 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, which are within the 30-kilometer radius from the intended port of discharge.