Thai Rice Said Offered Lowest in Indonesia’s Tender for 300,000 Metric Tons

THAILAND - HAMBURG. The lowest price offered in the international tender from Indonesian state purchasing agency Bulog to buy about 300,000 metric tons of rice was estimated at $655 a ton cost and freight (c&f) for rice sourced from Thailand, European traders said on Thursday.

Initial price offers were submitted in the tender on Wednesday. No purchase has yet been reported and price negotiations continue, traders said.

Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.

The lowest offer for Thai rice was believed to have been submitted by trading house Posco International for 30,000 tons, the traders said.

Offers in the tender were submitted for a series of consignment lots each of around 30,000 tons.

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The lowest offer for rice from Pakistan was estimated at $658 a ton c&f. The lowest offer for rice from Myanmar was assessed at $675 a ton c&f. Traders believed no other origins were offered.

Rice from Thailand dominated offers in the tender, submitted for every consignment lot with other prices ranging up to about $671 a ton c&f, traders said.

The rice is sought for arrival by April 30 and continues efforts by the country to boost supplies and cool prices.

The Indonesian government has allocated an additional rice import quota of 1.6 million tons for 2024, after shipping in near record volumes in last year, as dryness linked to the El Nino weather pattern delayed harvesting.

The latest import quota, on top of 2 million tons previously approved for 2024, comes amid expectations the January-March harvest will be lower than last year following below normal rains in Java - the country's key rice growing region.

A staple food for most of Indonesia's 270 million people, the local price of rice has climbed more than 16% since last year.