Vietnamese rice lowest price in Indonesia’s tender for 300,000 T

By Reuters

The lowest price offered in the international tender from Indonesian state purchasing agency Bulog to buy about 300,000 metric tons of rice was estimated at $609 a ton cost and freight (c&f) for rice sourced from Vietnam, European traders said on Tuesday.

Initial price offers were submitted in the tender on Monday and a decision is expected later this week. No purchase has yet been reported and price negotiations continue, traders said.

The tender seeks rice for arrival in Indonesia by May 31.

Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.

The tender continues a series of measures by the Indonesian government to raise rice imports to cool local prices.

Prices for rice, the staple for most of Indonesia’s 270 million people, have soared more than 16% since last year as the El Nino weather phenomenon cut rainfall across large parts of Asia in 2023, reducing output and sparking food inflation pressure.

The tender seeks white rice in a series of consignments between 25,000 to 31,000 tons sourced from Thailand, Vietnam, Myanmar, Pakistan and Cambodia.

The lowest offer for Vietnamese rice was believed to have been submitted by trading house Olam, the traders said.

The lowest offer for rice from Thailand was estimated at $610 a ton c&f from Ponglarp Company. The lowest offer for rice from Pakistan or Myanmar was assessed at $619.50 a ton c&f submitted by King Green Natural Foods for several consignments.

Rice from Vietnam and Thailand dominated offers in the tender in volume terms, traders said.

The rice should be packed in bags but shipment by breakbulk ship is preferred rather than in shipping containers.

In its last reported international tender on March 1, Bulog is believed to have purchased about 300,000 metric tons of rice.

(Reporting by Michael Hogan, editing by Kirsten Donovan)

This article has been republished from Nasdaq.com