About 300,000 tonnes of rice will be shipped to the Phlippines this year. — Photo gaongondatviet.vn

HA NOI (Biz Hub) — Viet Nam has won a contract to supply 300,000 metric tonnes (MT) of rice to the Philippines this year.

Deputy Chairman of the Vietnam Food Association Pham Van Bay revealed this to Biz Hub on March 11.

In a phone interview with BusinessWorld, Administrator of the Philippines's National Food Authority (NFA) Renan B Dalisay said that Viet Nam has won the contract to supply 150,000MT each of the 15 per cent and 25 per cent broken rice varieties.

Earlier, the NFA council agreed to import 250,000MT of 25 per cent broken, well-milled long grain white rice and another 250,000MT of the 15 per cent broken variety. The auction was held on February 27.

Thailand will deliver the remaining 200,000 MT to cover the balance of each rice variety.

"The offers of both Viet Nam and Thailand are below the reference prices or world market prices," Dalisay said.

The auction reference prices for the 15 per cent and 25 per cent broken rice varieties were set at US$442.94 per MT and $425.85/MT respectively.

Viet Nam, whose original bid was $442.5/MT, matched Thailand's $441/MT offer for the 15 per cent broken variety. With an original offer of $424.50/MT, Viet Nam likewise matched Thailand's $421/MT bid for the 25 per cent broken rice.

Half of the volume awarded by the contract will be delivered by the end of this month, Dalisay said, adding that the balance will be due for import by the end of April.

Rice stocks from the two countries will ensure buffer stocks for the three-month lean season that starts in July, the NFA administrator pointed out. — VNS