Vietnam wins bid to supply 150,000 tons of rice to the Philippines.

Vietnam won the bid against its competitor Thailand to supply 150,000 tons of rice to the Philippines at a price of $410.12 per ton.

Reuters reported that the Philippine National Food Authority (NFA) has invited contractors from Vietnam and Thailand to supply 250,000 tons of 25% broken rice, to be delivered in July and August this year, in order to replenish national rice stocks during the lean season (July-September) and curb rising domestic rice prices.

Initially, Vietnam offered 150,000 tons of rice at $419.35 per ton and Thailand offered 100,000 tons at $419 per ton, but the NFA rejected both because these prices were higher than the reference price and allowed for re-bidding.

Vietnam agreed to lower its selling price to $410.12/ton, matching the NFA's reference price, but Thailand withdrew, arguing that the NFA's reference price was too low.

Earlier this year, the Philippines imported 300,000 tons of rice from Vietnam and 200,000 tons from Thailand. The National Food Authority (NFA) is authorized to import an additional 350,000 tons of rice in case the El Nino phenomenon negatively impacts agricultural production. Vietnam will have to deliver the 150,000 tons of rice it won in the earlier tender to the Philippines by July.

Increased rice import demand from the Philippines is expected to support continuously falling export rice prices in Asia. Export prices for 5% broken rice from Thailand, Vietnam, and India are currently at $365/ton, $355/ton, and $380/ton respectively, down from $410/ton, $380/ton, and $390/ton earlier this year.

According to VOV.online