Philippines to buy more rice

Nov 6, 2009

MANILA - THE Philippine government has decided to buy rice from Vietnamese and South Korean companies to cover a shortage caused by recent back-to-back typhoons, a spokesman said Friday.
The decision came two days after the two companies - Daewoo International Corp. and Vietnam Southern Food Corp, or Vinafood - offered the lowest bids for 250,000 tonnes to the National Food Authority, agency spokesman Rex Estoperes said.
The Philippines, the world's biggest rice importer, lost at least 1.3 million tonnes of rice after being pummeled over the last two months by typhoons that left more than 900 dead and rice paddies submerged.
The government last year bought a record 2.3 million tonnes) of rice to plug a 10 percent domestic production gap.
Under the contract, Daewoo will provide 100,000 tonnes at US$468.50 (S$652.52) per metric tonne, and Vinafood the remaining 150,000 tonnes) at US$480 per tonne.
Daewoo is to make deliveries from January through April, with the first 20 per cent by Jan 25 while Vinafood will complete its shipments in January. -- AP