Cambodia Rice: World Rice News: Philippines Agrees to $400 per Ton Price for 100,000 Tons of Vietnam Rice

Philippines Agrees to $400 per Ton Price for 100,000 Tons of Vietnam Rice

The Philippines’ rice buying agency, the National Food Authority (NFA), has allotted the 100,000 tons rice supply order to Vietnam at a price of $400 per ton.

Earlier this week, it was revealed that the NFA had agreed to import 20,000 tons of rice from Vietnam at $470 per ton. This means that the Philippines will be paying Vietnam a total of $49.4 million for the 120,000 tons rice imports under the government-to-government deal that the NFA was tasked to import.

Viet 5% broken rice is today quoted around $420 per ton while Viet 25% broken rice is shown around $375 per ton, about $175 per ton and $200 per ton below Thai 5% and 25% rice respectively.

NFA officials have said that the $470 per ton was high, and that the $400 per ton is also high considering that it is a government to government deal. However, Philippine sources say the government accepted the price because the only other bidder was Thailand which had quoted much higher prices.

The Philippines has made it a policy to consider applications from only those countries that sign an agreement to prioritize rice supplies to the Philippines. So far, only Thailand and Vietnam have signed the agreement with the Philippines.

The Philippines has targeted a total of 500,000 tons of rice imports in 2012 – including the 120,000 tons government-to-government deal with Vietnam and 380,000 tons via private traders and farmer groups.

Source: Oryza/8June2012

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