Indonesia’s Bulog issues new tender to buy 320,000 mt of rice, targets August-September delivery
Indonesia’s Bulog has issued a new tender for 320,000 metric tons of 5% broken white rice, targeting delivery between August and September. The rice must be from the 2024 crop year and milled within six months. With an import quota of 3.6 million metric tons for 2024, the tender aims to stabilize prices but significant increases are unlikely. Indonesia has already purchased 1.7 million metric tons this year from key suppliers including Vietnam, Thailand, Myanmar, and Pakistan.
Indonesia, one of the world’s largest rice importers, has announced a new tender to purchase 320,000 mt of 5% broken white rice in July, according to the state-owned purchasing agency Bulog.
Bulog aims to purchase rice from Vietnam, Thailand, Myanmar, Cambodia, and Pakistan with the arrival period set for August-September 2024.
The result of the successful bidders will be announced on Aug. 2, with the requirement that the rice be from the crop year 2024 (October-September) and milled no later than six months, according to Bulog’s announcement July 19.
The Indonesian state purchasing agency has set an import quota of 3.6 million mt for 2024, compared to last year’s 3.8 million mt.
A source in Vietnam said that the tender is somewhat late and, with falling prices, it may help stabilize white rice prices, but is unlikely to cause a significant increase.
A Singapore-based trader said that predicting the Vietnamese rice market is challenging, as some parties aim to profit while others prioritize securing contracts. The trader added that, while prices in Vietnam might rise briefly, the overall trend will be bearish.
In Thailand, local prices are expected to stabilize but not rise significantly due to unspecified tender details. A Thailand-based trader said that, while local prices will stabilize after the Bulog tender, significant increases are unlikely as the breakup level of the tender is not specified, and quantity allocation by country has not been done.
So far in 2024, Indonesia has issued six tenders, purchasing a total of 1.7 million mt of rice in the first five tenders. Vietnam, Thailand, Myanmar, and Pakistan have been the main suppliers to Indonesia this year.
The Pakistani market was stable despite Bulog’s tender announcement. “No change in spot prices, as there aren’t big quantities of good stock left,” one Pakistani exporter said.
Market participants said that, since the Bulog tender is for shipment arrival in September, Pakistani exporters are planning to offer the 2024 crop in the tender.
“The Punjab crop will start arriving by mid-August,” a trader said, adding that it is possible for exporters to deliver shipments by September.
Platts, part of S&P Global Commodity Insights, assessed Thai 5% broken white rice FOB at $561/mt on July 22, reaching an eight-month low. Vietnamese 5% broken WR FOB was assessed at $534/mt, which is nearly a year low. Pakistani 5% broken WR was assessed down $10 on the week at $579/mt FOB July 22.
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