According to news sources, Grain importers in Philippines have issued an international tender to purchase 250,000 tons of white rice on Thursday, the rice could be 25% broken. Government’s running out stockpile of grains created the opportunity for rice exporters in the region to fill in the tender requirements.
According to National Food Authority (NFA), bids must be submitted before 25th of July, on that day sealed offers will be reviewed for final selection.
Philippines is one of the biggest rice importers in the world, the country usually buy rice from Thailand and Vietnam. But this time the tender is open for private suppliers of other countries including Pakistan and India.
India is the world’s largest rice exporter with $5.3 billion of exports holding the market share of 28.9 percent of total rice exports in the world. Thailand is the second largest rice exporter with $4.4 billion in exports, holding 23.7 percent of total exports.
United states and Vietnam are third and fourth in the top exporters list, having $1.9 billion and 10.4 percent, $1.4 billion and 7.4 percent respectively.
Pakistan is the 5th largest rice exporter with $905.5 million and 4.9% of share in total exports.
In terms of both price and quality Pakistan produces rice cannot be found anywhere else, this creates greater opportunities for Pakistan to win the contract and boost their rice exports.
Manila used to buy rice under government deals, which is shifted now to private deals in order to ensure the competitive deals and transparency removing the concerns about accusations that some NFA officials were making money through the deals which NFA has denied reportedly.
Government stock of rice has dwindled significantly over the past few years, government currently is unable to meet national demands, but the prices remained largely stabled in the country due to abundance private sector.
The NFA has directed to maintain a 15 days buffer inventory at any given time and a minimum 30 days during the lean harvest season from July to September, in order to keep stable supply and demand in the country.