Bangladesh approves white rice imports at $388.92/T

Singapore-based Indo-Sino and local Tanvir Enterprise have won a Bangladesh tender to buy 50,000 tonnes of white rice at $388.92 per tonne, cost and freight, a official said on Sunday. The country's state grain buyer in February issued the tender to import white rice from any origin that closed on March 7, as part of an effort to hold down domestic prices. Indo-Sino, which made the lowest offer at $388.92 in the tender, would supply 35,000 tonnes of white rice while second-lowest bidder Tanvir Enterprise would supply the rest 15,000 tonnes at the same rate, the food official said. "The cabinet purchase committee approved the proposal at a meeting on Sunday, and will soon sign contracts with the companies. Shipment must take place within 60 days after the signing," he said. Indo-Sino also made the lowest offer at $492 a tonne, c&f, in another tender to buy 50,000 tonnes of parboiled rice, that closed on March 22. Bangladesh, the world's fourth biggest rice producer, plans to import 300,000 tonnes of rice in the current fiscal year through June. Market sources said it could be part of a government move to build food reserves after it failed to procure enough rice locally. The government is also buying 750,000 tonnes of wheat by June. The south Asian country produces around 30 million tonnes of rice, normally enough to feed its population of 150 million, 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. Rice prices have risen over the past few months despite a good crop and healthy levels of stocks. In January, the government extended a ban on rice exports until June to contain price increases. Bangladesh usually exports a small quantity of aromatic rice. At that time, the government also started open market sales of rice in the capital and adjoining districts to tame food inflation, which shot up 10.56 percent in January from a year earlier after a rise of 9.50 percent in December.