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Sat, 19/05/2012 - 10:11 am.
Iraq buys 110,000 t Thai and Vietnamese rice

Iraq bought at least 110,000 tonnes of Thai and Vietnamese rice in its first purchases for over four months, officials and trade sources said on Wednesday. 

Officials said the total quantity bought this week by the Iraqi Grain Board comprised 60,000 tonnes of Thai and 50,000 tonnes of Vietnamese rice -- both at the price of $450 a tonne free-on-board (FOB).

 Trade sources said the quantities of Thai rice were bought mostly from Chaiyaporn and Toepfer selling some of the Vietnamese purchases. Official sources contacted by Reuters remained tight-lipped about the sellers. 

 The deals were the result of bids by international suppliers under the first tender announced this year by Iraq to buy at least 30,000 tonnes. The bidding deadline of the tender was extended to Feb. 4 from a previous bidding deadline of Jan. 27. 

 Iraq regularly buys more wheat and rice than originally sought in tenders.  Official sources confirmed the Iraqi Grain Board had been negotiating for another 100,000 tonnes of mainly Asian rice but had dismissed most offers because of doubts over suppliers' reliability and ability to deliver.  Officials say Iraq wants to buy more rice in 2008 from Vietnam and Thailand, whose prices are more competitive than U.S. rice, but trade sources say lower projected volumes from the two main Asian exporters may disrupt such plans.
   
   WRANGLING 
 Traders and officials estimate Iraq's rice import needs are almost 90,000 tonnes a month and an official source confirmed these sales are the first since October. 

 The state purchasers went on a massive buying spree last September and October in which they purchased mostly 1 million tonnes of mainly North American wheat and over 300,000 tonnes of rice. 

 But purchases were then abruptly halted after government wrangling over 2008 budget allocations for commodities purchases
when the import bill soared in 2007 after record grain prices. 

 Iraqi grain board officials blame politicians for holding up new grain purchases since late last year they say are essential to ensure monthly consumption levels are sufficiently met. 

 Further delays as a result of bureaucracy and red tape that postpones approvals of sales agreed by the grain board could only worsen a forecast shortfall in supplies this year, they say. 

 According to data obtained by Reuters from official sources Iraq's Umm Qasr port got delivery of 145,000 tonnes of rice in January this year. 

 Shipping and trade sources say this is from the purchases of 300,000 tonnes of mostly Thai rice and some U.S. rice purchased since September last year.


 (Editing by Chris Johnson)

 
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