Philippine traders mostly stay away from rice tender

PHILIPPINE: Private Philippine traders mostly stayed away from a rice import tender on Friday, hoping supplies will increase and prices ease on international markets in coming months.

The private traders and groups offered to buy only 21,560 tonnes out of a total of 163,000 tonnes on offer at the tender conducted by the state’s National Food Authority (NFA).

Traders and NFA officials said both the government and the private sector in the Philippines, the world’s biggest importer of rice, would wait until prices soften before returning to market.

“If Thailand and Vietnam harvest earlier, as they have indicated, then there will be additional volume in the world market,” said NFA assistant administrator Conrad Ibanez. “Yes, there is a possibility that prices will fall.”

Robert Hernandez, a private trader who participated in the auction, added: “Price are high outside and there is a lack of supply. So if we commit to buy a high volume and then cannot do it, we will be stuck.”

The importers were allowed to bid for up to 98,000 tonnes from Thailand, 25,000 tonnes each from India and China and 15,000 tonnes from Australia.

Manila, Friday, Reuters