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Pakistan Offers Lowest Bid in Indonesia’s 500,000-Tonne Rice Tender
Indonesia's Bulog agency received a low bid of $479/tonne for 500,000 tonnes of Pakistani rice to stabilize prices after a poor harvest. Decisions are expected next week.
ND
by News Desk
2024-11-01
Pakistan Offers Lowest Bid in Indonesia’s 500,000-Tonne Rice Tender

In response to Indonesia’s latest international tender for 500,000 metric tonnes of rice, the lowest bid submitted was for $479 per tonne, offered by traders for Pakistani rice, according to European trading sources on Friday. This bid for 26,000 tonnes marks the most competitive price in the tender launched by Indonesian state purchasing agency Bulog, with further negotiations expected before final decisions next week.

 

With rice shipments targeted for November through December, Bulog is sourcing 5% broken grade white rice from the 2024 crop year. Eligible supplies include recent harvests from Pakistan, Thailand, Cambodia, Vietnam, Myanmar, and India, among others.

 

Several additional offers were made for Pakistani rice, priced at $484 and $485 per tonne c&f (cost and freight), reflecting Pakistan’s competitive stance in the tender. By comparison, bids from other major rice-producing countries ranged from $511 per tonne for Thai and Cambodian rice, $513 for Indian rice, $515 for Vietnamese rice, and $517.50 for Myanmar rice, each for shipments ranging between 25,000 to 30,000 tonnes.

 

This tender underscores Indonesia’s urgency to control domestic rice prices, which have surged due to a disappointing local harvest. With rice production for 2024 estimated at 30.34 million tonnes, a 2.43% drop from the previous year, Indonesia is addressing its supply gap through significant import measures. Notably, the country aims to import up to 3.6 million tonnes of rice by the end of the year. Plans are also in place to expand domestic rice cultivation in 2025, with discussions underway to secure an additional 1 million tonnes from India next year.

 

As price talks continue, traders anticipate final offers and volumes may be adjusted in the coming days. The latest bid signals a strategic partnership opportunity with Pakistan, which may supply a significant portion of Indonesia’s rice imports if accepted.
Tagged:

RiceTrade

IndonesiaRice

PakistaniRice

BulogTender

GlobalAgriculture
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