Indonesia’s Bulog to Hold New Rice Purchase Tender in May
Published on: May 13, 2024.
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Indonesia, one of the world’s largest rice importers, has revealed its plans to purchase 300,000 mt of 5% broken white rice in May, according to state-owned purchasing agency Bulog. This announcement has the potential to impact rice prices in the region. The deadline for submitting bids for the tender is May 14, with the requirement that the rice be from the 2022-23 crop year and milled no later than six months, according to Bulog’s announcement on May 11.
So far, Indonesia has issued five tenders this year, resulting in the purchase of 1.7 million mt of rice. Suppliers from Vietnam, Thailand, Myanmar, and Pakistan have been the major contributors to rice imports in the Southeast Asian nation in 2024.
Bulog, the Indonesian state purchasing agency, has established an import quota of 3.6 million mt for this year, a slight decrease from the 3.8 million mt imported last year. The El Nino weather pattern, which led to extended dry conditions in Southeast Asia, caused reduced yields and output in the region, leading to tighter global rice supplies.
Market sources view Bulog’s purchases as a positive development for the Asian rice trade, as any indication of the state agency’s purchase talks tends to drive up prices. An exporter in Pakistan noted that the prices of Vietnamese and Thai rice are increasing as Bulog’s tender approaches in May.
Platts, part of S&P Global Commodity Insights, reported that Thai 5% broken white rice FOB increased by $10/mt to $599/mt on May 10, while Vietnamese 5% broken white rice FOB rose by $5/mt to $569/mt during the same period.
Industry insiders anticipate a rise in rice prices in the coming days due to Bulog’s tender announcement and the absence of India, a top exporter. These factors are expected to provide support in the market.
Source: SPGlobal.com
