HAMBURG: The international tender issued on Thursday by Indonesian state purchasing agency Bulog to buy 300,000 metric tons of rice seeks rapid arrival of the grain in Indonesia by May 31, European traders said on Friday.

Bulog gave little information when issuing the tender, saying more information would be given after traders had registered to participate on Friday.

Traders said on Friday the deadline for submission of price offers was April 16. Negotiations with Bulog will then follow with a decision on the purchase expected by April 18.

The tender continues efforts by Indonesia’s government to boost rice imports to cool prices after a poor local crop. Prices for rice, the staple for most of Indonesia’s 270 million people, have risen about 20% 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.

Indonesia’s government has responded with a major import programme seeking fast arrival of new supplies. The new tender seeks long grain white rice of 5% broken grade sourced from Thailand, Vietnam, Myanmar, Pakistan and Cambodia, the traders said.

The rice should come from the 2023/2024 crop year and should have been milled no longer than six months ago. It should be packed in 50 kg bags.

Shipment is only in breakbulk vessels, with delivery in shipping containers not allowed. In its last reported international rice tender on March 27, Bulog is believed to have purchased about 300,000 tons also for arrival by May 31.—Reuters