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11
th
August, 2014





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Latest News Headlines
Six suppliers eye 500,000 ton PHL rice deal
Firms bid to import 500,000 tons of rice
Vietnam's Rice Exports To Hit 6.3 Million
Tonnes In 2014
Rice exporters eye securing 500,000-ton deal
with Philippines
Thai Rice Exports In 2014 Could Exceed 9
Million Tonnes Target
Rice prices remain high in August
News Detail
Six suppliers eye 500,000 ton PHL
rice deal
August 11, 2014 7:50pm


Six international suppliers are likely to bid for state contracts to ship up to 500,000 tons of rice to the
Philippines in a tender later this month, the country's grains procurement agency said on Monday.Prospective
participants in the Aug. 27 tender are Vietnam's state-owned exporters Vinafood 1 and Vinafood 2, South
Korea's LG International, and global commodities traders Olam International Ltd., Louis Dreyfus and Archer



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Daniels Midland Co., according to a list of groups which bought bidding documents that was released by the
National Food Authority (NFA).
The NFA has been flooding local markets with its rice stocks following recent typhoons and spikes in retail prices for the
grain that pushed food inflation in to the highest in more than five years.The agency has allotted a budget of P10.3 billion
($235 million) to import 25-percent broken, long grain, well-milled white rice for delivery in three batches between
September and November.Based on the approved budget, the NFA is authorized to spend up to P20,600 ($469 dollar) per
ton, including delivery and insurance costs.Vietnam's 25-percent broken rice variety last week rose to $440 a ton, free-on-
board at Saigon Port, from $415-$420 the week before. The same variety from Thailand was quoted at $400 per ton, FOB
Bangkok.Tight supplies after strong first-half export volumes have held Vietnamese rice prices at their highest since early
2012, providing a chance for Thailand to sell more of the grain at a time when demand is strong.Seeking to boost thin
stockpiles currently estimated to be five days less than the minimum 30-day buffer required from the July to September
lean months, the Philippines has authorized the NFA to buy an extra 1 million tons of rice in the second half of the year.

Total rice purchases this year by the Philippines could exceed 2 million tons, the biggest in four years, with two big deals
totalling 1.3 million tons already won by Vietnam.The buying spree puts the Southeast Asian country on track to become
the world's third biggest buyer of the grain this year, based on estimates by the US Department of Agriculture, up from the
No. 8 spot it held last year. Reuters
Firms bid to import 500,000 tons of rice
By Czeriza Valencia (The Philippine Star) | Updated August 12, 2014 - 12:00am

MANILA, Philippines - Six companies are
bidding for a contract to import 500,000 metric
tons of rice from September to November this
year, the National Food Authority (NFA) said
yesterday. The six Louis Dreyfus
Commodities Asia Pte. Ltd., Vietnam Southern
Food Corp. (Vinafood 2), Vietnam Northern
Food Corp. (Vinafood 1), LG International,
ADM Rice Inc., and Olam International
procured bid documents at a pre-bid conference
yesterday called by the NFA.The NFA has
allotted a total of P10.27 billion for the



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importation. The bids would be opened on Aug. 27.The Philippines earlier imported 800,000 MT this year for
use as buffer stock during the prevailing lean season.
The NFA has also approved the importation if necessary of another 500,000 MT this year.Importers must
supply well-milled white rice harvested from January to June. The commodity must be packed in polypropylene
bags with NFA markings at 50 kilograms each as no container shipment shall be allowed.The first 40 percent or
200,000 MT shall be delivered not later than Sept. 30 and the other 40 percent on or before Oct. 31. The
remaining 20 percent of the total volume or 100,000 MT shall be delivered no later than Nov. 30.President
Aquino, in his last State of the Nation Address, said the government would not hesitate to flood the market with
imported rice to crush the operations of opportunistic traders who hoarded rice stocks to manipulate prices.
Meanwhile, the average wholesale and retail prices of rice continued to rise in the first week of August even as
palay prices remain constant, the Philippine Statistics Authority (PSA) reported yesterday. The PSA reported
the average price of palay in the first week of August was P21.53 per kilogram, the same as the previous week,
but 20.35 percent higher than the price quoted in the same period last year. Despite stable farmgate prices,
average wholesale and retail prices of well-milled rice are likely to increase slightly.The average wholesale
price of P41.37 per kilogram was 0.32 percent higher than the previous weeks price and 16.83 percent more
than the figure reported in the same period last year.
The average retail price of P43.92 per kilogram was 0.39 percent and 18.19 percent higher than in the previous
week and in the same period last year.The government hopes to bring down rice prices through increased
importation as traders now hold most of the rice supply.The NFA has also increased the daily rice releases to
10,000 MT from 6,000 MT through its accredited retailers nationwide.The state-run grains procurement agency
sells regular milled rice for P27 per kilogram and well-milled rice for 32 per kilogram to compete with
commercial rice prices.
Vietnam's Rice Exports To Hit 6.3 Million Tonnes In 2014
HANOI, Aug 11 (Bernama) -- The Vietnam Food Association (VFA) has forecast that the country's rice exports are likely
to reach 6.3 million tonnes this year, Vietnam News Agency (VNA) reported.The association also predicted rice exports
of 1.9 million tonnes and 1.4 million tonnes in the third and fourth quarters of 2014, respectively.Vietnam shipped over
3.6 million tonnes of rice in the first seven months of 2014, earning US$1.056 billion, representing decreases of 10.78 per
cent in volume and 10.27 per cent in value.However, the average free-on-board (FOB) price of Vietnam 's export rice hit
US$413.44 per tonne, up to US$2.43 compared to the same period last year.Last year, Vietnam exported 6.7 million
tonnes of rice, 11 per cent lower than the initial target, as the sector faced many difficulties.

Rice exporters eye securing 500,000-ton deal with Philippines



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BANGKOK, 10 August 2014 (NNT) Thai rice exporters are looking to team up with the Ministry of Commerce in order
to strike a deal with the Philippines at its upcoming reverse auction for imported rice. President of the Thai Rice Exporters
Association Charoen Laothamatas made known that the Philippines is scheduled to open a reverse auction this August 27
in pursuit of a total of 500,000 tons of rice. He expressed confidence that Thai rice will outshine the grains from rival
Vietnam at the event as its price is currently lower by 20 US dollars per ton. Since the amount of rice to be put up for
bidding is considered substantial, plus the type of grains demanded by the Philippines is the rare 25-percent white rice,
Thai exporters are reportedly seeking assistance from the Commerce Ministry in their preparation for the auction. In his
projection of the Thai rice export situation for the five remaining months of this year, Mr Charoen viewed that the country
should be able to export an average of 700,000-800,000 tons each month. As reasons, he cited the declining output from
Vietnam and the skyrocketing demand in Malaysia, Indonesia and the Philippines.

Thai Rice Exports In 2014 Could Exceed 9 Million Tonnes Target
BANGKOK, Aug 11 (Bernama) -- The Thai Rice Exporters Association expects Thailand's rice exports this year to
exceed the target of nine million tonnes, thanks to high demand from oversea, Thai News Agency (TNA) reported.
Chukiat Opasawong, Honorary President of the Thai Rice Exporters Association, said Sunday it is highly likely that
Thailand will be able to export more than nine million tonnes of rice, although the rice export volume might not reach 10
million tonnes mark.This will result to an increase of the domestic rice price for crop to be harvested late this year to
8,500 baht per tonne in line with the intention of the governing National Council for Peace and Order, Chukiat said.He
noted that most oversea buyers want to purchase new crop and are not very interested to buy paddy from the government's
stocks, thus he expects the country to be able to clear 18 million tonnes of rice in the stocks within 3-4 years.
Meanwhile, Charoen Laothamatas, President of the Thai Rice Exporters Association, said Thailand should be able to
export more rice in the remaining months of the year.The export volume should reach some 700,000-800,000 tonnes of
rice per month due to high demand in the region, especially from Malaysia, Indonesia and the Philippines, he
said.Charoen said Thailand is also likely to find rice exports "less difficult" as rival Vietnam does not have sufficient rice
for exports.The Thai Rice Exporters Association president said the Philippines will open bidding for the supply of
500,000 tonnes of rice on Aug 27 and that this is a good opportunity for Thailand to try to clinch the import deal.He noted
that Thai rice prices remain lower compared to the prices in Vietnam.-- BERNAMA

Rice prices remain high in August
The government is opening the bid for 500,000 MT of rice imports this month to curb rising prices



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Rappler.com
Published 6:20 PM, Aug 11, 2014
Updated 6:20 PM, Aug 11, 2014
AGRICULTURE DOWN. Production of palay went up by 3.28% but the agriculture sector, as a whole, slowed down in the first quarter of 2014.
AFP file photo
MANILA, Philippines Wholesale and retail prices of rice continued to rise in the first week of August, the
Philippine Statistics Authority (PSA) reported Monday, August 11. The PSA reported said the average price of
palay in the first week of the month remained at P21.53 per kilogram, 20.35% higher than the level in the same
period last year, and same as the previous weeks.Despite stable farmgate prices, hikes in the average wholesale
and retail prices of well-milled and regular rice were seen.

For well-milled rice, the average wholesale price of P41.37 per kilogram was higher by 0.32% from the
previous week, and by 16.83% from the same period last year. The average retail price of P43.92 per kilogram
was higher by 0.39% from the previous week and by 18.19% last year. For regular milled rice, the average
wholesale price rose by 0.29% from the previous weeks quotation of P38.47 per kilogram and by 19.81% from
last years quotation of P32.20 per kilogram.
The average retail price of P40.45 per kilogram was higher
by 0.27% from the previous week and by 18.55% from the
same period last year.With traders now holding most of the
rice supply in the country, the government is trying to bring
down prices by increasing imports.The National Food
Authority (NFA) also increased its daily rice releases
through accredited retailers to 10,000 metric tons from
6,000 metric tons.The NFA is holding a tender for the
importation of 500,000 MT of rice and has a standby
authority for the importation of 500,000 MT more this
year.The state-run grains procurement agency sells regular
milled rice for P27 per kilogram and well-milled rice for



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P32 per kilogram to compete with commercial rice prices.
6 companies eye bidding
At least 6 companies are planning to bid for the supply of 500,000 MT programmed for importation between
September and November. The companies that bought bid documents during the pre-bid conference held by the
NFA Monday were Louis Dreyfus Commodities Asia Pte. Ltd, Vietnam Southern Food Corporation (Vinafood
2), Vietnam Northern Food Corporation (Vinafood 1), LG International, ADM Rice. Inc., and Olam
International.Each importer secured bid documents for one lot each equivalent to 100,000 per lot with a contract
price of P2.054 billion.
The NFA allotted a total of P10.27 billion for the importation of the entire volume.The bids will be opened
during the open bidding proper on August 27. Importers must supply well-milled white rice with 25 percent
brokens. The rice should have been harvested from January to June 2014 and freshly milled.These must be
packed in polypropylene bags with NFA markings as no container shipment will be allowed.
The first 40% (200,000 MT) of the volume shall be delivered not later than September 30, while another 40%
shall be delivered not later than October 31. The remaining 20% (100,000 MT shall be delivered not later than
November 30. Bidders, which may come from omnibus origin, were asked to supply a minimum of 50,000 MT.
Suppliers with pending import-related liabilities prior to 2013 are not allowed to participate in the bidding
unless these have been fully settled before the bidding date.President Benigno Aquino III, in his last state of the
nation address, said the government would not hesitate to flood the market with imported rice to crush the
operations of opportunistic traders who are hoarding stocks for
release at high prices. Rappler.com
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