The Philippine government auctioned off the second of three tranches of 600,000 metric tons (MT) of rice and may excercise a partial award, a government official said on Tuesday. “There is a probability that we may partially award the bidding for the second 600,000 metric tons," Ludivico Jarina, National Food Authority deputy administrator and chairman of the bids and awards committee, told reporters after the auction. Jarina said some of the bids were too expensive. Of the nine bidders, only five companies qualified technically and financially. These were Thai supplier Chaiyaporn Rice Co. Ltd., state-owned Vietnam Southern Food 2 (Vinafood 2), Toepfer International, Capital Cereals Co. Ltd. and Daewoo International.

The prices ranged from $618.95 to $765.50 per metric ton, offered by Vinafood 2 and Chaiyaporn, respectively. Vinafood 2 tendered for six lots of 100,000 metric tons each at prices ranging from $618.95 to $725.50. Chaiyaporn tendered for two lots of 100,000 MT each at $745.50 for the first lot and $765.50 for the second.

International trading houses Toepfer International offered $698.38 per MT for a total of 125,000 MT; Capital Cereals for 100,000 MT at $745per MT; and Daewoo International for 100,000 at $668 per metric ton.

The government will award the bids within 10 working days.

The government has held three auctions for the country’s 2010 rice requirements. The first was on November 4, where Vinafood 2 and Daewoo International won the auction.

The second auction was for 600,000 MT on December 1 and the third for another 600,000 MT on Tuesday.

The government is set to auction off 600,000 metric tons more of rice on December 15, the last of the three sets of 600,000 MT rice imports.

Jarina said the government was still evaluating the bids for the December 1 auction.

He added that the government might place a reorder if the unsubscribed volume falls below a fourth of the total volume tendered. The government may also hold a fifth auction if the procurement gap is big enough.

The Philippines is still recovering from the ravages of successive typhoons that destroyed about 1.3 million MT of mature rice crops.

The World bank said it may take three years for the Philippine economy to recover from losses caused by natural disasters this year. — GMANews.TV