THE Philippines, the world’s biggest rice importer, may buy up to 25 percent more of the grain than initially sought in a tender Wednesday to meet a shortfall after storms slashed production, an official said yesterday.
The National Food Authority might order more than 300,000 metric tons of rice to lock in prices from the winning bidders in the tender, agency spokesman Rex Estoperez said.
The tender requested offers for 250,000 tons of 25 percent broken white rice for delivery between January and April.
“If the prices are good, the government can reorder 25 percent,” Estoperez said in a telephone interview.
“It makes sense to reorder.”
The Philippines is accelerating rice imports after storms wiped out at least a million tons of the crop, and on concern that drought in India, the world’s second-largest grower, might curb global supplies and cause prices to surge.
Rice traded in Chicago has jumped 11 percent in the past eight days and was at $15.15 per 100 pounds as of 10:34 a.m. in Singapore on Thursday. Futures reached a record $25.07 in April 2008 as soaring food prices sparked protests around the globe.
Daewoo International submitted the lowest bid at the tender yesterday, offering to sell 100,000 tons of rice for at least $468.50 a ton for delivery in January.
State-run Vietnam Southern Food Corp. gave the second-lowest bid at $480 a ton for 150,000 tons for delivery in January, according to the state-run agency.
The export price for Thai 25 percent broken white rice increased 3.1 percent to $429 a ton on Thursday, up from $416 a week earlier, the Thai Rice Exporters Association said.
Thai 100 percent grade-B white rice, the regional benchmark, increased 3 percent to $541 a ton. The price climbed to a record $1,038 a ton in May 2008.
“We want to make sure we will not be late in the market,” Agriculture Secretary Arthur Yap said on Oct. 30.
Yesterday’s tender, the first for 2010 supplies, was held a month earlier than usual.
Some bidders at yesterday’s tender were seeking higher prices for rice for delivery beginning February, a sign supplies may be expected to tighten by then, boosting prices.
Philippine crop losses from tropical storm Ondiy and typhoon Pepeng had widened by 25 percent to 1 million tons, widening the shortfall in production, Agriculture Undersecretary Emmanuel Paras said on Oct. 30.
Prices at the tender were “quite good,” said National Food Deputy Administrator Vic Jarina, chairman of the committee tasked to evaluate the bids.
Another tender might be held in December, if an assessment of the country’s rice supply after the storms showed a need for more imports, he said on Wednesday.
A notice needed to be issued by next week if the country wanted to hold a tender in December, to meet the requirements of the procurement law, Estoperez said yesterday. Bloomberg
