Vietnam, Thailand skip Philippines’ 203,000 T rice tender
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Rice exporters Thailand and Vietnam did not submit offers at a Philippines 203,000-tonne import tender, citing stricter terms. The tender by one of the world’s top rice importers was held to meet unfilled orders after a tender on Oct. 18 for 250,000 tons of rice by Manila’s state-owned National Food Authority (NFA) secured only 47,000 tons due to high offer prices.
Thailand and Vietnam were the only government suppliers accredited for Tuesday’s re-tender. NFA officials said both submitted letters saying they would not participate due to the stricter terms set out by the Philippines food authority.
NFA spokesman Rex Estoperez said import terms had been made more stringent to address concerns that arose from previous rice purchases, including health and safety issues, which would raise the cost for suppliers.
“I can’t say if there will be another bidding,” Mercedes Yacapin, head of the tender panel, told reporters, adding the decision will be left to the NFA Council, which is made up of the country’s economic managers.
President Rodrigo Duterte last month scrapped a 20-year-old government cap on rice imports to help curtail soaring prices of the Philippine diet staple by increasing supply.
The Philippines is on a rice buying spree this year, with import approvals by the NFA hitting 2.4 million tonnes, just below the record 2.45 million tons bought in 2010 when rising global food prices stoked shortage fears.
The NFA is set to hold another import tender for 500,000 tons of rice on Nov. 20.
Questions & Answers
Q.Why did Thailand and Vietnam not participate in the Philippines' 203,000-tonne rice tender?
Why did Thailand and Vietnam not participate in the Philippines' 203,000-tonne rice tender?
Both countries cited stricter terms set out by the Philippines food authority as their reason for not submitting offers. NFA officials confirmed they received letters stating non-participation due to these terms.
Q.What made the import terms more stringent for the recent rice tender?
What made the import terms more stringent for the recent rice tender?
The import terms were made more stringent to address concerns arising from previous rice purchases. These concerns included health and safety issues, which would inevitably raise the cost for suppliers.
Q.Will the Philippines hold another tender to secure the needed rice after this one failed?
Will the Philippines hold another tender to secure the needed rice after this one failed?
The head of the tender panel, Mercedes Yacapin, could not confirm if there would be another bidding. The decision on future tenders will be left to the NFA Council.
Q.Why is the Philippines importing so much rice this year?
Why is the Philippines importing so much rice this year?
The Philippines is increasing rice imports to help curb the rising prices of the diet staple by increasing supply. President Duterte recently scrapped a 20-year-old government cap on imports for this reason.
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