5 Asian firms to supply 500,000 metric tons rice imports

MANILA, Philippines — Five companies from Asia are expected to supply 500,000 metric tons (MT) of rice as part of the open tender importation scheme to boost the country’s buffer stock with government savings reaching about P800 million.

During the bidding yesterday, state-run National Food Authority (NFA) announced that five companies from Singapore, Vietnam, Myanmar and Thailand had the lowest bids for the procurement of the 500,000 MT, out of the 14 companies that passed the eligibility to bid.

There were 16 companies that actually bought bid documents, but only 14 submitted their bids during the bidding process.

“We are very happy that this bidding is successful,” Committee on Government-to-Private Procurement chairperson and NFA deputy administrator Judy Carol Dansal told reporters.

“We expect to issue notice of award within the week and look into the post qualification documents,” she said.

The rice imports at 25 percent brokens, well-milled long grains white rice were divided into nine lots where a bidder can bid the maximum volume per lot.

Reference price for the importation was set at $470 per MT based on the foreign exchange rate of P54.50 per dollar.

For the first lot of 65,000 MT in La Union, Singaporean company Olam International Ltd. had  the lowest offer of $429.80 per MT for a total of $27.9 million.

Vietnamese company Tan Long Group Joint Stock Co. submitted the lowest bid for 118,000 MT lot 2 in Subic at a price of $459 per MT.

Olam again secured lots 3 and 4 at $425.80 per MT and $432.10 per MT, respectively. Lot 3 is in Batangas with 40,000 MT, while lot 4 is in Tabaco, Albay for a total of 30,000 MT.

Shwe Wah Yaung Agricultural Products Co. Inc. from Myanmar, meanwhile, submitted the lowest bid for lot 5 in Iloilo and Bacolod at $418.65 per MT for a total of 28,000 MT.

For lots 6 and 7, Thailand-based Asia Golden Rice Co. Ltd. offered the lowest price at $458 per MT and $439.75 per MT, respectively.

Lot 6 has a volume of 45,000 MT to be discharged in Cebu and Tacloban, while lot 7 is in Zamboanga, Cagayan de Oro and Surigao for 54,000 MT.

Thai Capital Cereals Co. Ltd. submitted the lowest bid for 45,000 MT lot 8 in General Santos City and Davao at a price of $439.75 per MT.

The last lot in Manila was secured by Olam with the price offer of $434 per MT for the volume of 75,000 MT.

The total amount of all bidders reached P$220.5 million or P12 billion, saving the government around P800 million.

The NFA has allotted a total of P12.8 billion for the procurement of the volume.

The first 250,000 MT should be delivered not later than Dec. 31, while the remaining 250,000 MT should arrive not later than Jan. 31, 2019.

The 500,000 MT can cover approximately 15 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.

The added importation for the last quarter of the year will bring total imports to 1.6 million MT for the whole 2018.