Bangladesh to tender for 50,000 tonnes of rice

Bangladesh's state grains buyer will tender this week to buy 50,000 tonnes of parboiled rice to replenish food reserves, a food official said on Tuesday. Bangladesh, the world's fourth biggest rice producer, plans to import 300,000 tonnes of rice in the current fiscal year to the end of June. "We are going to issue an international tender soon to buy 50,000 tonnes of rice to shore up our stocks," said an official of the Directorate General of Food who declined to be quoted because he is not authorized to speak to the media. Market sources said it could be part of a government move to build food reserves after failing to procure enough rice locally. Rice prices have risen over the past few months despite good crops and healthy levels of stocks. Bangladesh is buying 25,000 tonnes of white rice at $395 per tonne from the Singapore-based Indo-Sino Trade Pte Ltd in an international tender. Indo-Sino also made the lowest offer at $388.92 a tonne in another Bangladesh tender to buy white rice that closed on Sunday. In January, the government extended a ban on rice exports until June to curb price increases and ensure availability of the staple in the domestic market. At that time, the government also started open market sales of rice in the capital and adjoining districts to hold down prices. The south Asian country produces around 30 million tonnes of rice, normally enough to feed its 150 million people, but often requires imports to cope with shortages due to natural calamities such as floods and droughts. Bangladesh had to import rice worth $800 million in 2008.