UPDATE | Bangladesh tenders to import 50,000 tonnes of rice

  • * Seventh tender since May after floods hit local output

    * State grains buyer looks to import 1.2 mln T of rice

    * Seeking imports both in government deals and tenders (Add details of import plan)

    DHAKA, Aug 1 (Reuters) - Bangladesh's state grain buyer has issued its seventh international tender since May to import 50,000 tonnes of parboiled rice in an effort to replenish reserves.

    Bangladesh, the world's fourth-biggest rice producer, has emerged as a major importer of the grain this year after flash floods in April hit domestic output. As a result, the country is facing dwindling stocks and high local prices.

    The deadline for offers in the tender is Aug. 20, with the rice to be shipped within 40 days of signing any deal, a senior official at the country's state grains buyer said.

    The country has also been importing rice via state-to-state deals.

    “We’ll be issuing tenders and at the same time looking for government deals until our import target is fulfilled,” Badrul Hasan, the head of Bangladesh's state grain buyer told Reuters.

    The state grain buyer aims to import as much as 1.2 million tonnes this year, and has so far struck deals with Vietnam.

    But plans to import from India and Thailand could be suspended because of high prices and the government is already looking to Cambodia to replenish stocks.

    A Bangladeshi delegation, led by Food Minister Kamrul Islam, will visit Cambodia this week to sign a memorandum to import rice, ministry officials said.

    Bangladesh bought 200,000 tonnes of Vietnamese white rice at $430 a tonne and 50,000 tonnes of parboiled rice at $470 a tonne in a state-to-state deal - at rates much higher than in previous tenders.

    The lowest offer in the fifth tender by the state grains buyer for 50,000 tonnes of parboiled rice, which opened last Thursday, was from Olam at $419.51 a tonne, CIF liner out.

    The sixth tender for a similar quantity of rice will close on Aug. 8.

    Private traders have imported around 150,000 tonnes of rice from neighbouring India after the government cut import duties in late June.

    But prices of rice, a staple food for Bangladesh’s 160 million people, dropped only a little, posing a problem for the government which faces a national election due next year.
  • Bangladesh issues tender to import 50,000 tonnes of rice

  • DHAKA, June 21 (Reuters) - Bangladesh's state grains buyer on Wednesday issued its fourth international tender since May, looking to import 50,000 tonnes of parboiled rice as it grapples with depleted stocks and record local prices. The deadline for offers is July 9, with the rice to be shipped within 40 days of signing any deal, a senior official at the country's state grains buyer said, declining to be identified. The step comes as the government is set to slash tax on rice imports after flash floods hit local output, plunging state reserves to 10-year lows. Growing demand from Bangladesh will help stoke Asian prices that have already hit multi-year highs in recent months. Separately, Ataur Rahman, additional secretary at the food ministry, told Reuters last week, that the country would import 200,000 tonnes of white rice at $430 a tonne and 50,000 tonnes of parboiled rice at $470 a tonne from Vietnam in a government-to-government deal. Those rates are sharply higher than what it has been paying through previous tenders. Bangladesh is buying 50,000 tonnes of white rice at $406.48 a tonne and 100,000 tonnes of parboiled rice at $427.85 and $445.11 a tonne through tenders. The government is also in talks with Thailand and India to import rice to replenish reserves. Meanwhile, Bangladesh's central bank has ordered banks to allow traders to import rice without any deposit against letters of credit. (Reporting by Ruma Paul)  
  • Bangladesh to import 250,000 tonnes of rice from Vietnam at raised prices

  • Bangladesh to import 250,000 tonnes of rice from Vietnam at raised prices

    Vietnamese rice prices in May hit their highest in over a year

     
    Bangladesh is set to buy 250,000 tonnes of white and parboiled rice from Vietnam at prices $50-$90 higher per ton than the previous month, to maintain immediate availability of stock in the market, as well as reserves. According to the food ministry proposal, the government will be importing 200,000 tonnes of white rice at $430 per ton, though the price per ton was $380 in the last month. The ministry is also planning on procuring 50,000 tonnes of parboiled rice at a cost of $470 per ton, while the price had been less than $450 just a week ago. In addition, in a recent international tender by the food ministry, parboiled rice was listed at $ 427.85 per tonne and white rice was at $406.48. The country’s rice stock has hit a 5 year low, at 193,000 tonnes.
    Also Read- Dhaka offered Tk36 per kg for 50,000 tonnes of rice
    The food ministry’s proposal to import the specified amount of rice will be placed before the cabinet committee for public purchase on Wednesday, requesting Tk908.85 crore in funds. Finance minister AMA Muhith will preside over the meeting, according to a procurement official. Vietnamese rice prices in May hit their highest in over a year on expectations of strong demand from top importing countries such as Bangladesh and the Philippines. Cost per kg of the parboiled rice imported from Vietnam will stand at Tk39.01, while it will be Tk35.69 for white rice.
    Also Read- Bangladesh to speed up rice imports in wake of flooding
    An official of the Finance Division said that the government allocation to procure wheat and rice from domestic sources was not utilised as high prices were demanded by farmers and rice millers. The situation arose as the government had set the price of rice at Tk37.40 per kilogram, at a time when coarse rice was selling at between Tk45 and Tk50 per kilogram. rice During a question and answer session at Jatiya Sangsad last week, Food Minister Qamrul Islam had said rice reserves were slightly lower compared to the same time last year.
    Also Read- Vietnam and Bangladesh extend rice trade deal to 2022
    “The government has already planned to import 600,000 metric tonnes of rice from abroad to meet the shortfall in the crop due to premature flooding in the Haor region,” he said. The minister had also said that, as per the plan, the government has already called for international tenders for the import of 300,000 metric tonnes of rice. Earlier in the year, on May 23, the food minister had signed an MoU to finalise the rice imports with Vietnamese Industry and Trade Minister Tran Tuan Anh in a government-to-government deal, during a Bangladeshi delegation’s visit to the country.
  • Govt gets offers to buy 50,000t of rice

  • The lowest offer in the tender from Bangladesh’s state grains buyer to purchase 50,000 tonnes of parboiled rice was $445.11 a tonne CIF liner out, officials in Bangladesh and European traders said on Monday.

     

    The offer was made by trading house Olam.

    The tender had closed on 11 June and the rice is to be shipped within 40 days of contract signing.

    No purchase has yet been made and offers are still being considered, European traders added.

    They said the other offers in the tender in dollars a tonne CIF liner out were: Agro Corp at $449.55, Singsong Food at $458.00, Desh Trading at $459.67, Amir Chand at $474.00 and Sukhbir Agro at $459.30.

    Bangladesh has started a new programme to import rice to build reserves and cool local prices after sudden floods damaged local crops.

    Domestic rice prices reached record highs in May and state reserves are at six-year lows in the wake of the flooding that wiped out around 700,000 tonnes of Bangladesh’s rice crops.

    The state grains buyer said it would import 600,000 tonnes of rice after the flooding, initially issuing two tenders for a total of 100,000 tonnes of rice, its first such tenders since 2011.

  • Bangladesh gets lowest rice import tender

  • Bangladesh received a lowest offer of $406.48 a tonne CIF liner out from Singapore-based Agrocorp International in a tender that opened on Sunday to import 50,000 tonnes of white rice, officials at the state grains buyer said.

     

    Five traders competed for the tender issued by the Directorate General of Food at a time when local rice prices have reached record highs and state reserves are at 10-year lows.

    Other offers in a tonne CIF liner out were: LDC $413.13, Olam $413.90, Phoenix $421.00 and Desh Trading $446.70, the officials said.

    One trader said the origin of the lowest offer was not known but was likely to be from Vietnam.

    A Bangldesh delegation was in Vietnam last week to finalise imports of the staple grain in a government-to-government deal, Food Ministry officials said.

    Vietnamese rice prices this week hit their highest in over a year on expectations of strong demand from top importing countries such as Bangladesh and the Philippines.

    The state grains buyer earlier this month said it would ship in 600,000 tonnes of rice, initially issuing two tenders for a total of 100,000 tonnes of rice, its first such tenders since 2011.

    In its first tender that opened last week, it received a lowest offer of $427.85 a tonne CIF liner out from Dubai-based Sukhbir Agro Energy to import 50,000 tonnes of parboiled rice.

  • Bangladesh gets lowest offer of $427.85/T in rice import tender

  • May 22 Bangladesh received the lowest offer of $427.85 a tonne from Dubai-based Sukhbir Agro Energy Ltd in a tender to import 50,000 tonnes of parboiled rice, officials at the state grains buyer said on Monday. The state agency, Directorate General of Food, came up with its first tender for rice since 2011 as local rice prices hit a record high, and state reserves are at a six-year low. (Reporting by Ruma Paul; Editing by Sherry Jacob-Phillips)
  • Bangladesh seeks to import 50,000 tonnes of rice

  • Traders have until May 21 to submit bids, the Directorate General of Food has said.
     
    Traders will have to supply 60 percent of non-Basmati parboiled rice through Chittagong port and 40 percent through Mongla port, according to a tender notice by the state grains buyer. This is the first rice tender by the government this fiscal year. Meanwhile, the government is considering to a temporary withdrawal of duty on rice imports after flash floods in northeastern backwaters. After meeting with rice mill owners last week, Food Minister Qamrul Islam said that no country usually impose duty on essential commodities.
    He said that was the case in Bangladesh as well, but it was done to stop import by unscrupulous traders. "Considering the scenario, we have proposed the government to withdraw it. We believe the price manipulation can be curbed if the duty is cut," the minister told the media. He claimed Bangladesh usually have a surplus of 1.5 to 2 million tonnes of rice every year. Figures posted on the food ministry's website show that the stock in government warehouses until Apr 27 stood at 305,000 tonnes against 750,000 tonnes in the same month last year. The government plans to buy 1.5 million tonnes of grains during the Boro crop season this year, which may not be possible now after flash floods inundated crop fields in the haors or backswamps of northeast. Unseasonal downpours in early April caused the floods leaving Boro cropfields at haors (backswamps) in Sunamganj, Kishoreganj, Netrokona, Moulvibazar, Sylhet, Habiganj, Moulvibazar and Brahmanbaria districts inundated. According to figures by the food ministry, the flash floods damaged Boro crops, which would have yield around 600, 000 tonnes of rice. But unofficial estimates put the number at 2.2 million tonnes.