PH picks Vietnam to supply 187,000 tonnes of rice

Posted at 04/30/13 3:04 PM

MANILA - The Philippines has chosen Vietnam's bid for supplying 187,000 tonnes of rice to boost stocks and meet its annual import needs ahead of the typhoon season in the third quarter, the National Food Authority (NFA) said on Tuesday.

This year's demand from the Philippines, the world's biggest rice buyer in 2010, represents a small fraction of the 8 million tonnes Vietnam aims to export in 2013.

"We agreed to buy the 25 percent broken rice grade and the volume will form part of our buffer stock for the lean months from July to September," NFA Administrator Orlan Calayag told reporters.

Calayag said there was no need for the Philippines to import more rice as the government expects another record harvest this year.

The Philippines is targeting an 11 percent increase in unmilled rice output to 20 million tonnes this year, from a record harvest of 18 million tonnes last year. 

State-run Vietnam Southern Food Corp, or Vinafood II, offered a price of $459.75 per tonne on a cost, insurance and freight basis, beating Thailand's offer of $568 per tonne, Calayag said.

Vinafood's offer translates to a free-on-board cost of $367.62 per tonne, he said. Vietnamese 25 percent broken rice was quoted at $360-$370 a tonne FOB last week. 

Rice prices in Vietnam, the world's second-biggest exporter, fell to their lowest in more than two years last week and further declines may be expected as demand remained soft amid rising supply. 

The Philippines, which targets self-sufficiency in the grain this year, imported 500,000 tonnes of rice last year, after buying 860,000 tonnes in 2011 and a record 2.45 million tonnes in 2010.