Philippines Drops Multinational Buying of Rice as Vietnam Restarts Exports

Based on ranking of qualified bids, Myanmar was on the top with an offer of $489.25 a tonne for a volume of 33,000 tonnes, $494.25 a tonne for a different volume of 42,000 tonnes

The government of the Philippines has dropped a plan for importing up to 300,000 tonnes of rice from various governments as its traditional main supplier, Vietnam, has restarted selling grains, the agriculture department mentioned on Saturday.

The Philippines, which is the world's biggest rice buyer, had plans of importing under a government-to-government scheme for ensuring sufficient supply during the lean harvest season in the third quarter.

State agency Philippine International Trading Corp (PITC) had issued a tender to import 25 percent broken, well-milled long-grain white rice, with bids from India, Thailand, Vietnam, and Myanmar opened on June 8.

Philippines Drops Plans of Importing up to 300,000 tonnes of Rice

Picture for representation
A farmer transplants rice seedlings in a paddy field Reuters

Based on the ranking of qualified bids, Myanmar was on top with an offer of $489.25 a tonne for a volume of 33,000 tonnes and $494.25 a tonne for a separate volume of 42,000 tonnes. Vietnam's Vinafood 1 would have also won a supply contract for 30,000 tonnes at $497.30 a tonne. Other bids were rejected, including those from India and Thailand.

In a statement, Agriculture Secretary William Dar said the rice import plan had been dropped as it was "no longer necessary under the current situation". Vietnam resumed its rice exports from May after a brief suspension to assess its local supply during the COVID-19 pandemic. The Philippines imports around seven percent to 14 percent of its rice requirements, with 90% coming from its Southeast Asia neighbor.

Potential tightness in domestic supply "has been properly addressed with the lifting of the rice export ban by Vietnam and the rice import arrivals of around 1.3 million metric tonnes as of the third week of June," Dar said. He expressed optimism that the country's remaining import requirement can be secured within the remaining six months of the year by the private sector.

(With agency inputs)