HAMBURG: Indonesian state purchasing agency Bulog has issued an international tender to buy about 350,000 metric tons of rice, European traders said on Friday.

The deadline for submission of price offers is Sept. 3, with price negotiations to follow for several days before a decision. Rice arrival in Indonesia is sought in September to October.

The tender continues heavy rice purchasing by Indonesia in global markets to boost local supplies and cool prices after a disappointing domestic harvest.

In its previous tender reported on Aug. 5, Indonesia purchased a total of 320,000 tons. Indonesia could import up to 4.3 million tons of rice this year if the domestic harvest is insufficient, the National Food Agency’s Sarwo Edhy said on July 22.

Indonesia’s statistics agency estimated that rice output for January to August will be 9.52% lower than the same period in 2023. Rice is a staple for most of Indonesia’s 270 million people, but domestic prices have been rising after crops were hit by adverse weather. In the new tender, Bulog is seeking white rice of 5% broken grade from the 2024 crop year, milled not longer than six months ago, traders said. The rice can be sourced from Vietnam, Thailand, Myanmar, Cambodia and Pakistan.—Reuters