The Philippine government has passed a budget of P10.3 billion ($236 million) to import half a million tons of rice including 25 percent broken, long grain, well milled white rice through a tender rescheduled at Aug-27 due to time constraint , according to a bid invitation published over the weekend by National Food Authority (NFA).
Recent natural calamities in the country like typhoons and spikes has raised the prices of rice in the country hence to maintain the prices of comodities in the country the goverment is going to import 1 million tons of rice.
President Benigno Aquino III announced on July 28 that the NFA has allowed to import 2 million tons of rice to fulfill the demand of the country and it may also buy additional rice if needed in emergency.
According to the USDA, Philippine is the third largest buyer of the country.The tender is open for all the rice brokers, dealers and exporter including those of Vietnam also who is the supplier of rice to the country through years along with Thailand.
The Thailand government is in discussion with several buyer in Asia including the Philippines to sell its 3-4 million tons of rice from the warehouses in the state.Also Vietnam rice prices are at the highest level in the past 2-3 years because of increase in their prices as their demand has increased by China
The Vietnam rice has become uncompetitive for thai rice as the government continued to offload state stocks on the world market.
The NFA has decided to deliver the varieties of rice including 25 percent broken, long grain, well milled white rice in three batches between September and November.
The first shipment of 200,000 tons should arrive not later than Sept. 30, followed by another batch of the same volume not later than Oct. 31. The final shipment of 100,000 tons should arrive not later than Nov. 30.
Bidders will be offered five lots of 100,000 tons each.
The Southeast Asia country has shifted away from setting a target date for its plan to be completely self-sufficient in the production of rice, after missing its end-2013 goal, keeping its doors open to imports in the coming years.