Vietnamese Rice Emerges as Most Affordable Option in Indonesia’s 300,000 T Tender
Published on: March 26, 2024.
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HAMBURG, March 26 – Indonesian state purchasing agency, Bulog, recently held an international tender to buy around 300,000 metric tons of rice. European traders have reported that the lowest price offered for rice sourced from Vietnam was estimated at $609 per ton cost and freight (c&f). The tender, which seeks rice for arrival in Indonesia by May 31, is part of the Indonesian government’s efforts to increase rice imports in order to stabilize local prices.
Due to the impact of the El Nino weather phenomenon, rice prices in Indonesia have risen more than 16% since last year. The reduction in rainfall across Asia in 2023 has led to decreased rice output and increased food inflation pressure. As a result, the government has taken measures to address the situation, including raising imports.
The tender specifically seeks white rice in quantities ranging from 25,000 to 31,000 tons from Thailand, Vietnam, Myanmar, Pakistan, and Cambodia. Traders have reported that the lowest offer for Vietnamese rice came from trading house Olam. The lowest offer for Thai rice was estimated at $610 per ton c&f from Ponglarp Company. For rice from Pakistan or Myanmar, the lowest offer was assessed at $619.50 per ton c&f, submitted by King Green Natural Foods for multiple consignments.
Vietnamese and Thai rice dominated the offers in terms of volume, with the rice expected to be packed in bags and shipped by breakbulk ship, rather than in shipping containers.
This tender follows Bulog’s recent purchase of approximately 300,000 metric tons of rice in their last reported international tender on March 1.
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