The National Food Authority has said that it has rejected all the bids in its 500,000 tons rice tender as all were above the allowed government budget.

The rice imports to be in September and October will increase the state stockpiles and hence break down the rice prices

The NFA will again held the bid for another tender after the the agency’s  bidding committee reviews its budget.The government allowed a budget of f $456.60 per ton but bids ranged from $460 to $496.75 per ton.

Based on the non-responsive bids, we can declare a failure of bidding,” Efren Sabong, head of the NFA bidding panel, told an audience of rice traders.

There were four traders who submitted the bid for the tender namely Vietnam’s Vinafood 1 and Vinafood 2 and global commodities traders Louis Dreyfus and LG International.

A successful tender would bring the Philippines’ total duty-free shipments this year to around 1.7 million tons, the biggest in four years. Additionally, the private sector can import 350,000 tons this year subject to a 40 percent tariff.

The forecast by Philippine Statistics Authority estimates the total rice output to be decrease by 2% which is of 19.07 million ton this year.

The data can again be revised if  the Typhoon in the second half of the year will hit the rice growing provinces in the country and hence prevent farmers to grow rice in the field.

Major rice exporters such as Vietnam and Thailand are looking for any signs the Philippines may need to import more, hoping to unload grain from their huge stockpiles.

USDA estimated  for Philippines that it needed to import as much as 1.6 million tons in 2015.

The Philippines has loosen its tarrif policy on importation from 2015 under a new deal with the World Trade Organization