October 31, 2007

 

Manila may reset corn tender to third week of November 

 

 

The Philippines is likely to reset a tender for 70,000 tonnes of yellow corn to the third week of November, a government official said on Tuesday (October 30).

 

But industry groups want the government to raise the volume of corn imports in the next tender to complete the government's planned corn shipments of 400,000 tonnes this year.

 

The groups submitted a letter to the Department of Agriculture (DA) last week requesting that it combine the corn purchase of 70,000 tonnes and another tranche of 200,000 tonnes in one tender.

 

Conrad Ibanez, assistant administrator at the state grain agency National Food Authority (NFA), said the tender might push through within the third week of November.

 

Ibanez said the DA is yet to approve the petition of the corn industry to import the additional 200,000 tonnes corn.

 

The NFA declared a failed tender for 70,000 tonnes of corn last week due to high prices.

 

Traders said the lowest price submitted at Tuesday's tender was US$304.5 per tonne from trading firm Toepfer International for corn from Thailand.

 

The first tranche of 130,000 tonnes corn imports the Philippines ordered in April had an average cost of US$215 per tonne.

 

The 70,000 tonnes corn is expected to arrive in late December and the remaining 200,000 tonnes is likely to be delivered by February.

 

The government had planned to import a total of 400,000 tonnes of corn this year to bridge the gap in local supply for animal feed.