Việt Nam wins bid to supply 60,000 tonnes of rice to Philippines
![Việt Nam wins bid to supply 60,000 tonnes of rice to Philippines](/temp/resize/400x300/upload/news/08-2020/b2186933-5f2e15729eda110f68c46779.jpg)
HÀ NỘI — Việt Nam has won a tender offered by the Philippines to export 60,000 tonnes of rice to the partner country at a higher price than that of countries which won the bids, according to the Ministry of Industry and Trade.
Rice loaded for exports at Hậu Giang Food Company. Việt Nam won a bid to export 60,000 tonnes of rice to the Philippines. — VNA/VNS Photo Duy Khương
Accordingly, 45,000 tonnes out of the total would be delivered to Manila while the remaining 15,000 tonnes would be sent to Davao.
The Philippines invited tenders for a project to purchase 300,000 tonnes of rice under government to government (G2G) auction. This is the first auction in the form of G2G since the Philippines' rice industry was liberalised. The country's import under the G2G mechanism is due to the fact that many businesses have yet to deliver rice in private contracts signed earlier with the Philippines' counterpart, while the G2G contracts have faster delivery times.
The Philippine International Trade Corporation (PITC) was given US$149 million by the government to buy the rice.
In particular, the Philippines needs 25 per cent broken rice at the reference price of $497.62 per tonne, delivered at the ports of Manila, Cebu, Tacloban, Zamboanga and Davao.
The rice would be for national reserves to ensure national food security amid the impact of the novel coronavirus.
India, Thailand, Myanmar and Việt Nam submitted their bids, and only Thailand failed to win the contract.
India is set to supply 96,000 tonnes with prices of $484.7 and $486.7 per tonne while Việt Nam is projected to ship 60,000 tonnes priced at $497.3 per tonne. Myanmar is to sell 33,000 tonnes for $489.3 per tonne.
It is expected that the first 150,000 tonnes of rice would be delivered before July 14. The remaining amount would be before August 14.
Rice export surge with the highest price in years
The Ministry of Industry and Trade said Việt Nam’s rice exports surged after the Government allowed the resumption of exports from May 1.
The General Statistics Office said in the first five months of the year, rice export turnover reached $1.4 billion, posting 17.2 per cent and 3.7 per cent year-on-year increase respectively.
It was estimated that rice exports in May sharply increased by 47 per cent and 55.3 per cent in terms of quantity and value over the previous month to reach 750,000 tonnes with value of $395 million.
Notably, Việt Nam’s rice export prices last month was at an average of $527 per tonne, representing 21.4 per cent year-on-year increase. This has been the highest hike in years.
In total, the average rice export price in the first five months of the year was $485 per tonne.
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