Big news for Rice exporters of Pakistan
ISLAMABAD- Indonesia’s state food procurement agency Bulog on Friday bought about 150,000 tonnes rice from Pakistan, European traders said.
The purchases were made in direct deals negotiated without international tenders being issued.
Some 45,000 tonnes of 5 per cent broken grade rice was bought at about $460 a tonne c&f and 105,000 tonnes of 15pc broken grade was bought at about $450 a tonne c&f, they said.
All the rice is for shipment from May to July.
Traders had previously said Bulog had been seeking offers for only 50,000 tonnes of Pakistani rice.
“I think the deals show that Indonesia’s import requirements remain large despite several large recent purchases,” one European trader said.
Bulog said on March 20 it planned to import a total 500,000 tonnes of rice up to the end of June to improve local supplies and cool domestic prices.
Bulog also bought about 500,000 tonnes of rice to be sourced from Vietnam and Thailand, traders said on March 29.
Bulog also bought about 50,000 tonnes of rice from Pakistan on March 21 for shipment up to May 31.
Rice Exporters Association of Pakistan (REAP) Senior Vice-Chairman of Rafique Suleman said that the deal will likely to fetch $70 million foreign exchange.
He said the eight Pakistani exporters who were awarded the contract include Garibsons (Pvt) Ltd, Hassan Ali Rice Export Compnay, Meskay & Femtee Trading Company (Pvt) Ltd, K.K. Rice Mills (Pvt) Ltd, M.M. Commodities, Al Hamza Trading Company, Conwill Pakistan (Pvt) Ltd and Kangore Traders.
Mr Sulman, who is heading a delegation to Indonesia, said that the awarding of a big rice contract to Pakistani exporters shows that the Bulog has full confidence in the private sector.