The National Food Authority (NFA) Council said on Thursday that it has decided to award the contract for the procurement of 100,000 metric tons (MT) of rice to Vietnam based on the revised offer they submitted in a tender held on June 16.
Vietnam offered to sell 25-percent broken well-milled rice at $416.85 per MT under a government-to-government deal approved by the NFA Council.
The NFA said in a statement that the decision to award the supply contract to Vietnam was made in a special meeting held on June 17, a day after the government rejected the initial bids submitted by Vietnam, Thailand and Cambodia.
Offers from Vietnam, Thailand and Cambodia were all above the government’s price ceiling of $408.14 per MT (freight-on-board).
Vietnam initially offered to sell rice at $417 per MT; Thailand, $418 per MT; and Cambodia, $459.50 per MT. The NFA asked their representatives to revise their quotations as prices were higher than what the Philippine government has approved.
Thailand decided to withdraw from the bidding, while Vietnam revised its offer to $416.85 per MT and Cambodia still offered $459.50 per MT.
The Philippines will pay a total of $41.69 million for 100,000 MT of Vietnam rice, $8.71 million higher than the approved budget for the deal.
The 100,000 MT of rice is part of the 250,000 MT the NFA Council has authorized to import to secure rice supply for the lean months, when farmers do not usually harvest palay and prices are high.
Vietnam was earlier awarded the contract to supply 150,000 MT of 25-percent broken, well-milled long grain rice. The NFA said the 250,000 MT awarded to Vietnam has an average price of $412.81 per MT.
The entire 250,000 MT is expected to arrive in the country by the middle of August.