Tuesday, May 6, 2008

Philippines: World's Biggest Rice Consumer?

By Liza Ann Javier
Bloomberg Asia

The Philippines, the world's biggest rice importer, canceled a tender to buy 675,000 metric tons after only one company submitted an offer amid limited global supplies. Grain futures rebounded in Chicago.

Vietnam Southern Food Corp. was the only company to offer the grain, National Food Authority Deputy Administrator Vic Jarina said. The authority will wait until the ``market softens'' before holding another tender, possibly in the second half, he said today.

The Philippines failed to fill a tender last month, helping rice prices rise to a record in Chicago on April 24. Philippine Agriculture Secretary Arthur Yap said on May 2 that today's planned purchase was intended to boost stockpiles and the country was prepared to reject offers if it deemed prices were too high.

``Global supply until the end of the year will remain tight,'' Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said in a telephone interview. The Philippines ``will probably need to issue another tender.''


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