January 11, 2007	Thursday	Zilhaj 20, 1427

JAKARTA, Jan 10: Indonesian state logistics agency Bulog said on Wednesday it had received bids from six trading houses for a 250,000-ton rice import tender for delivery between January and March.The rice import tender is part of a government plan to import 500,000 tons of rice to cover an expected shortfall in domestic rice output this year.

The rest will be imported through government-to-government deals with Vietnam.

Bulog wants to buy 15 per cent broken grade rice from Thailand and Vietnam on a cost, insurance and freight basis.

The rice should be from the latest crop in 2006 and milled in the last three to four months.

The six trading houses that have bid are Vietnam Southern Food Corp (Vinafood 2), Kien Giang Export Import Co., and Tien Giang Food from Vietnam, Thailand's Ponglarp Co. Ltd., PT Louis Dreyfus Indonesia and Nidera, said Agusdin Fariedh, Bulog's head of rice tenders.

Louis Dreyfus offered 50,000 tons of Pakistani rice at $299.5 a ton, while Nidera offered 12,000-15,000 tons Thai rice at $334.95 a ton, Fariedh told tender participants.

Kien Giang and Tien Giang each offered 50,000 tons Vietnamese rice at $314.26 and $313.6 a ton.

Vinafood 2 offered 200,000 tons Vietnamese rice at prices ranging from $312.45 to $315.28 per ton.

Fariedh said Bulog had set the ideal price at between $317.78 and $322.08 a ton.

The tender results will be announced between January 22 and 23.

From the tendered amount, 58,000 tons should be delivered to Jakarta and Banten in West Java by February 28, while 192,000 tons should be delivered to 10 ports in islands outside Java by March 31.

Separately, Fadly Zon, a member of Bulog's rice tender oversight committee, said Bulog had secured a government-to-government deal with Vietnam to buy 250,000 tons of rice at $308 a ton.

Bulog has been assigned by the government to import the staple of Indonesia's 220 million people.

In 2005, the government partly lifted a rice import ban in place since 2004 to allow Bulog to import rice for the poor and to ensure stocks were sufficient.

Rice imports are allowed if Bulog's government stocks fall below 1 million tons or local prices of medium grade rice rise above 3,550 rupiah ($0.393) a kg.

The imported grain is not allowed to be sold for public consumption as it is allocated as a buffer stock and is only used for emergency purposes and to stabilise prices. —Reuters