MANILA -- The National Food Authority rejected yesterday submitted tenders to buy 500,000 metric tons of rice because all bids were higher than the ceiling price set by the government.

Following the failed bidding, NFA spokesman Rex Estoperez said the agency will likely issue another request for tenders after the agency's bidding committee makes a review of its budget.

Four traders submitted bids at the tender, namely Vietnam's Vinafood 1 and Vinafood 2 and global commodities traders Louis Dreyfus and LG International.

The four traders submitted bids ranging from USD 460 to USD 496.75 per metric ton – higher than the undisclosed ceiling of USD 456.60 per metric ton.

The NFA issued the tender for 500,000 MT of rice after importing 800,000 MT this year for use as buffer stock during the prevailing lean season for rice cropping and drive down domestic rice prices.

The imports, targeted to arrive between September and November, were meant to beef up government stockpiles and bring down local retail prices of the grain, which have helped push food price inflation up to its highest in more than five years.

The NFA Council has also approved, on standby, the importation of as much as 500,000 MT more this year as needed.

In his recent state of the nation address, President Benigno S. Aquino III said the government would not hesitate to flood the market with imported rice to crush the operations of opportunistic traders who have been hoarding rice stocks for release at high prices. *PNA

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