Indonesia buys rice in tender for 500,000 metric tons -traders

Indonesian state purchasing agency BULOG has started buying in an international tender for up to 500,000 metric tons of rice after price offers were submitted on Monday, European traders said on Tuesday.

The precise volume bought so far was unclear. Traders estimated about 470,000 tons had been bought so far with negotiations about the rest continuing.

Traders expected the bulk of the purchase to be sourced from Vietnam with some from Pakistan and Myanmar.

Lowest price for the rice from Vietnam was estimated at about $648 a ton cost and freight (c&f) included with a substantial volume from Vietnam said to have been bought at between $653 to $660 a ton c&f.

Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.

Traders estimated that some 51,000 tons of rice from Pakistan was purchased in two consignments at about $649 and $660 a ton c&f.

Some 30,000 tons were bought from Myanmar at about $660 a ton c&f. The rest of the purchase was expected to be sourced from Pakistan, traders said.

The white rice was sought for arrival in February and March. Accepted origins were Vietnam, Thailand, Myanmar, Cambodia, Pakistan, India and China.

The rice of 5% broken grade should be sourced from the 2023/24 crop and milled no later than six months ago, they said.

The new tender continues major import efforts by Indonesia’s government to support local supplies and cool prices.

Indonesia in December ordered its army to help farmers plant rice after severe drought reduced output in Southeast Asia’s most populous country, lifting prices, requiring increased imports and threatening food security.

Indonesia’s rice output in January and February is estimated to fall 46.3% from the same period a year ago as an El Nino weather pattern hits harvests.

The government has set an Indonesian 2024 rice import quota of 2 million tons.
Source: Reuters (Reporting by Michael Hogan, editing by Christina Fincher)