Credit: REUTERS/Willy Kurniawan

Adds detail, origins, background

HAMBURG, March 18 (Reuters) – Indonesian state purchasing agency Bulog has issued an international tender to buy 300,000 metric tons of rice, European traders said on Monday.

The registration deadline for tender participation is Wednesday, March 20.

Bulog will then start price negotiations, which could last several days, traders said.

The tender continues efforts by Indonesia’s government to boost rice imports to cool prices after a poor local crop.

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

The latest tender seeks white rice of 5% broken grade sourced from origins including Vietnam, Thailand, Pakistan and Myanmar, traders said.

The rice should come from the 2023/2024 crop year and should have been milled no longer than six months ago.

In its previous reported tender on March 1, Bulog was believed to have purchased about 300,000 tons of rice expected to be sourced mainly from Thailand, with some from Pakistan.

(Reporting by Michael Hogan Editing by David Goodman )

Published Date: March 18, 2024