The Philippines, the world's biggest rice importer, said on Tuesday it will buy 586,554.37 tonnes of rice from its last tender this year on December 15, slightly less than the volume it sought to purchase due to high bids. Vietnam's Vinafood 2 secured the contract to bring in the 25 percent broken rice between March and June at $664.9 per tonne, National Food Authority (NFA) spokesman Rex Estoperez told Reuters in a phone interview.
Manila's latest purchase brings to 1.82 million tonnes its total rice orders for 2010. The Southeast Asian nation is rushing to order imports of its staple before prices rise and to make up for lower local production of the grain after strong typhoons in September and October flattened crops.
Officials earlier said the government could top up this total contracted volume by 25 percent, which could raise its total imports to as much as 2.28 million tonnes based on the contracts awarded so far. This would be close to the record 2.3 million tonnes it bought last year which propelled grain prices to all-time highs. At NFA's first rice tender for 2010 supply last month, the lowest bid came in at $468.50 per tonne.
By December 15, the lowest bid price jumped nearly 42 percent to $664.9 per tonne. The sharp increase in bids have prevented the government from ordering the full volume it had sought in three tenders this month. It wanted to buy 600,000 tonnes in each weekly tender that ran from December 1 to 15. But it only awarded contracts for 509,950 tonnes for the December 1 tender and 474,252.70 tonnes for the December 8 tender.