THAILAND will supply 100,000 tonnes of 25-per-cent white rice worth US$42.4 million (Bt1.46 billion) as part of the Philippines’ buffer stock import programme this year, after bidding for the second time. Vietnam also won the bid for 150,000 tonnes
Thailand lowered its quote to $424.85 per tonne, including cost, insurance and freight, after bidding $432 in the first round.
The Philippine National Food Authority’s government-to-government procurement committee awarded Vietnam Food Corp a quota of 150,000 tonnes and Thailand, represented by the Department of Foreign Trade, 100,000 tonnes.
Both countries had to submit offers for the second time after the first round was higher than the Philippine median price of $425 per tonne.
In the first round, Vietnam quoted $432.75 per tonne.
Chutima Bunyapraphasara, permanent secretary of the Commerce Ministry, “Winning the Philippine tender offer shows that Thai rice is competitive,” adding, “Rice traders should not pressure farmers to sell rice at too low a price, as the world markets still have high demand for rice.”
The Foreign Trade Department will assign the Thai Rice Exporters Association to ship this rice under quotas allocated to its members.
Charoen Laothammatas, president of the association, said 40,000 tonnes of rice of the 100,000 tonnes would be shipped to the Philippines this month and 60,000 tonnes next month.
Charoen said winning the Philippine order was difficult, as the quotation included the cost plus freight.
Rice exporters need to manage their costs and exchange rate, as the baht has fluctuated and appreciated sharply compared to other currencies.