The National Food Authority (NFA) Council has awarded to Vietnam via a government-to government (G2G) procurement scheme the importation of 100,000 metric tons (MT) of long grain white rice (25 percent brokens) based on its revised offer of US$ 416.85/MT.
Presidential Assistant for Food Security and Agriculture Modernization Secretary Francisco “Kiko” Pangilinan, in a statement Thursday, said the NFA Council has accepted the revised offer of Vietnam after the NFA Committee on Government-to-Government Procurement (CGGP) elevated the case to them.
“The requirement was to import 250,000 MT in time for the lean months beginning July 1. The first 150,000 MT was purchased at US$ 410 while the remaining 100,000 MT was purchased at US$ 416. The average weighted price for the entire requirement of 250,000 MT combined is US$ 412.81 per metric ton which is much lower than the rejected offers of the three countries of US$ 455 (Cambodia), US$ 419 (Thailand), and US$ 418 (Vietnam),” he noted.
On June 16, the CGGP rejected the initial offers from the participating countries which was way above the government’s price ceiling of US$ 408.14/MT during the initial bidding.
Cambodia submitted a revised offer of US$ 455.50/MT while Thailand declined to submit a revised offer.
Under the Terms of Reference of the G2G importation, in the event that revised offers are submitted, these shall be evaluated on the basis of the lowest price.
NFA Administrator Renan Dalisay, for his part, said the average weighted price of US$ 412.81/MT “will show that we got a good price relative to the initial bid offers.”
“We are also pressed to ensure that the rice imports begin is made available beginning July 1 — the start of the lean months which is in less than two weeks time,” he added.
NFA is mandated to maintain a 30-day buffer requirement beginning the lean month of July.
At present, the NFA has a buffer stock of 750,000 MT of rice, which is enough for the next 24 days. The 100,000 MT rice to be imported could add a little over three days of supply for the country.
NFA said there’s a need to beef up and increase the country’s buffer stock for the lean months in line with the government’s policy to maintain a 30-day buffer stock. (PNA)