Lowest offer for Indonesia’s 300,000 T tender comes from Vietnamese rice
Published on: April 26, 2024.
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The Indonesian state purchasing agency Bulog recently conducted an international tender to purchase approximately 300,000 metric tons of rice. According to European traders, the lowest price offered was around $588.00 per ton cost and freight (c&f) for rice that is expected to be sourced from Vietnam. However, no purchase has been reported yet, and price negotiations are still ongoing. A decision regarding the tender is expected to be made in the coming days, with the requirement for the rice to arrive in Indonesia by May 31.
The Indonesian government has been taking several measures to increase rice imports in order to stabilize local prices. The prices for rice, which is the staple food for the majority of Indonesia’s 270 million people, have increased by approximately 20% since last year. This rise in prices can be attributed to the El Nino weather phenomenon, which resulted in reduced rainfall across many parts of Asia in 2023, leading to lower rice output and food inflation.
Indonesia has already secured 1 million tons of rice imports for 2024. In the recent tender, the agency sought white rice in consignments of approximately 25,000 to 30,000 tons from Thailand, Vietnam, Myanmar, Pakistan, and Cambodia. Traders reported that offers from Vietnam and Thailand dominated the tender in terms of volume. The lowest offer for Vietnamese rice was believed to have been submitted by Vietnam Northern Food, while the lowest offer for rice from Thailand came from Siam Golden Rice at an estimated price of $593.00 per ton c&f. The lowest offer for rice from Pakistan, Myanmar, or Cambodia was assessed to be $620.50 per ton c&f.
It is worth noting that Bulog’s previous international rice tender, conducted on March 27, resulted in the purchase of approximately 300,000 tons of rice for arrival by May 31.
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