Philippines seek 600,000 tons more rice

The Philippines announced on Monday it will hold its second rice tender in less than a month, this time to buy 600,000 tons, as the world's largest importer of the grain secures 2010 supplies.

State-run National Food Authority (NFA) said on Monday it is seeking 25% broken white rice at a tender on December 1. The grain is scheduled for arrival between February and May 2010.

The agency has set a budget of P15.264 billion ($325 million) for the purchase, or around $541 a ton, cost and freight, at current exchange rates.

NFA awarded two contracts on Friday for supply of a total 250,000 tons of the same rice grade to Vietnam's Vinafood 2 and Korean trading firm Daewoo International Corp after a tender on November 4.

The lowest bid at last week's tender, submitted by Daewoo, was $468.50 a ton, C&F, well below NFA's budget of around $536 a ton based on exchange rates at that time.

For next month's tender, NFA said source countries would be Thailand, Vietnam, China, Pakistan, Australia, India and the United States.

Maximum volume to be sourced from Pakistan, US, Australia and India will be 100,000 tons, while volumes from Vietnam, China and Thailand will be up to 600,000 tons, the agency said.

The Philippines has moved early to ensure there will be enough of the national staple in the first half of 2010 after typhoons hit farmland in September and October.