Indonesia Purchases 300k Tons of Rice in Tender, Traders Confirm
Published on: May 2, 2024.
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Indonesia Purchases 300,000 Tons of Rice from International Traders
Indonesia’s state purchasing agency, Bulog, has recently completed a tender in which it bought approximately 300,000 metric tons of rice, according to European traders. The rice will be sourced from Vietnam, Thailand, Pakistan, and Myanmar, diversifying the country’s rice imports.
The purchase breakdown reveals that the lowest price for Vietnamese rice, sold by trading house Vinafood, was estimated at $585 per ton cost and freight (c&f) included. A total of 109,000 tons of Vietnamese rice was purchased, with other sales made at $588 to $590 per ton c&f.
Additionally, 110,000 tons of rice from Thailand were bought at the lowest price of $608 per ton c&f. Thai Capital Crops reportedly sold the rice at this price. Moreover, 56,000 tons of rice from Myanmar were purchased at a fixed price of $610 per ton c&f. Pakistan supplied 25,000 tons of rice, all purchased at $617 per ton c&f.
It is important to note that the prices and volumes provided are based on assessments from traders, and further estimates may be made later.
Bulog has set a deadline for the rice to arrive in Indonesia by May 31. This move is part of the Indonesian government’s efforts to increase rice imports and address the rising local prices. Since last year, rice prices, the main staple food for Indonesia’s 270 million population, have surged by approximately 20% due to the El Nino weather phenomenon, which led to reduced rainfall in Asia and subsequently impacted rice output.
To meet the growing demand, Indonesia has already secured around 1 million tons of rice imports for 2024.
The rice purchased in this tender must be packed in bags and shipped via break bulk ships.
This tender demonstrates Indonesia’s commitment to ensuring an adequate and stable supply of rice for its citizens, despite ongoing challenges in the global rice market.
Source: https://www.xm.com
