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Indonesia believed to have bought about 300,000 T rice in tender

28 March 2024

HAMBURG, March 27 (Reuters) - Indonesian state purchasing agency Bulog is believed to have purchased about 300,000 metric tons of rice an international tender this week, European traders said on Wednesday.

Traders estimated that 117,000 tons will be sourced from Thailand, 108,000 tons from Vietnam and the rest from Pakistan and Myanmar.

The lowest price was estimated at $609.00 a ton cost and freight (c&f) for 21,000 tons from Vietnam, in line with offers submitted earlier this week.

The tender sought rice for arrival in Indonesia by May 31.

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

The tender continues efforts by the Indonesian government to raise rice imports to cool local prices.

Prices for rice, the staple for most of Indonesia's 270 million people, have risen more than 16% since last year after the El Nino weather phenomenon cut rainfall across large parts of Asia in 2023, reducing output and sparking food inflation.

Indonesia is expected to have a domestic rice surplus of 1.7 million tons in the first half of 2024, narrowing from 3.36 million tons last year, an Indonesian agriculture ministry official said on Wednesday.

The rice in Bulog’s tender was purchased in a series of consignments of differing sizes, traders said.

Traders said that the following tender awards had been made, with tons bought, origin, price per ton c&f and expected seller:

Tons Origin Price Seller

25,000 Thailand $616.00 R&S Trader

26,000 Thailand $617.00 Ponglarp

26,000 Thailand $611.50 Thai Capital Crops

30,000 Vietnam $615.00 King Green

31,000 Vietnam $613.00 GIA

26,000 Vietnam $616.00 Vinafood

25,000 Pakistan $623.00 KK Rice Mills

25,000 Myanmar $626.00 Riceland

25,000 Pakistan $623.00 Bulk Management

20,000 Thailand $611.50 Olam

20,000 Thailand $611.50 Olam

21,000 Vietnam $609.00 Olam

The rice should be packed in bags but shipment by breakbulk ship is preferred rather than in shipping containers.

In its last reported international tender on March 1, Bulog was also believed to have purchased about 300,000 tons of rice.

Source : nasdaq

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