likely to bag bulk of rice order
Vietnam, the world's second largest shipper
of rice, is likely to corner a big share of the 500,000 tonnes of rice being
sought by the Philippines' next week, traders said on Thursday.
They said Vietnam had a bigger chance of winning a
larger volume due to cheaper prices and because the rice exporting arm of the
government of Thailand, the world's largest shipper, was not expected to
The Philippines is seeking 500,000 tonnes
of 25 percent or 15 percent broken rice from China, Thailand, Vietnam, Pakistan
or the United States for April to May arrival.
Nine Vietnamese firms, including Vietnam
Southern Food, or Vinafood 2, are expected 10 join at least 23 private and state
companies in the tender.
Traders said they did not expect offers of Chinese
rice because of a lack of surplus stocks, while Pakistani exporters said they
may not join due to high domestic prices, freight costs and stiff standards set
by the Philippines.
Officials in Manila said the United States
was included as a possible point of origin because the Philippines may opt to
buy 45,000 tonnes of iron-fortified
US exporters have difficulty competing with their
Asian rivals because of the freight charges to deliver to the region.
"The most competitive origin now is
Vietnam because of its price,” one trader said. "Thai rice is more
expensive because essentially it's a premium origin, it has many clients.”
Vietnam's 25 percent broken rice eased to $247 per
tonne, free-on-board basis, Saigon Port, from $250-$252 per tonne last week due
to abundant supplies from the ongoing harvest and lack of export demand, traders
in Hanoi said. - Reuters