MANILA -- The National Food Authority (NFA) will review its reference price for government-to-government (G-to-G) rice importation after participating countries offered to sell at prices higher than what was approved in the budget.
During Tuesday’s bidding to supply 203,000 metric tons (MT) of 25-percent broken, well-milled long grain white rice, Thailand and Vietnam initially offered USD480.50/MT and USD483/MT, respectively, way above the reference price set by the NFA at only USD447.88/MT.
Despite this, Thailand maintained its offer price, while Vietnam later submitted slightly lower offer at USD481.50, still beyond the reference price.
“We follow the reference price, our indicator to accept the offers. Since all the offers are beyond the reference price, we must reject the offers. The bidding failed in the sense of the price but in terms of participation, they are here, they offered,” NFA Assistant Administrator Maria Mercedes Yacapin, chair of the NFA Committee on G to G Procurement, told reporters after the auction.
Yacapin noted the reference price is based on their studies on price trends in international markets.
“We will review everything -- the price, the delivery schedule… We still have to evaluate and report to the (NFA) Council for the necessary direction,” she said.
Yacapin is confident about the country’s rice buffer stocks despite the failure to secure offers within NFA’s reference price.
“We are doing domestic procurement plus harvests are ongoing. The commercial sector has its own inventories,” she said.
“Because of the harvest season, our participation in the market has been reduced because there is an ample supply in the commercial sector. Our participation has been reduced to 10 percent, (and) 10 to 15 percent in some areas,” she added.
Last Nov. 6, the NFA also failed to secure offers for the supply of 203,000 MT of rice under G to G tender with Thailand and Vietnam due to some provisions of the terms of reference for the importation. The two countries did not elaborate.
The volume was the balance from the 250,000 MT offered for bidding last Oct. 18 under the open tender scheme. (PNA)
