European traders said on Friday that the lowest price offered in the international tender by Indonesia’s state purchasing agency Bulog to purchase approximately 500,000 metric tons of rice was $479 per tonne cost and freight (c&f) for rice that was expected to come from Pakistan.
It was reported that the lowest offer was made for 26,000 tonnes.
Traders stated that price negotiations are anticipated to continue in the coming days and that no purchase has yet been reported. Next week, a decision is expected.
The assessments reflected in the reports come from traders, and additional estimates of prices and volumes may be made in the future.
Rice from Thailand, Cambodia, Vietnam, Myanmar, Pakistan, or India can arrive in Indonesia between November and December. Friday saw the submission of price offers.
According to traders, the next lowest offers for Pakistani rice were $484 and $485 per tonne c&f, respectively.
For consignments ranging from 25,000 to 30,000 tonnes, the lowest reported offer for rice came from Vietnam at $515, followed by Thailand/Cambodia at $511, India at $513, and Myanmar at $517.50 per tonne c&f.
After a disappointing domestic harvest, the tender keeps Indonesia buying a lot of rice on global markets to lower domestic prices.
It is anticipated that Indonesia will produce 30.34 million metric tons of rice in 2024, a decrease of 2.43% from the previous year. The majority of the decline occurred between January and April, when production decreased by nearly 15% year-over-year.
To support supply, Indonesia means to import up to 3.6 million tons of rice this year. In addition, it intends to significantly expand the planted area in 2025 and contemplates importing 1 million tonnes of rice from India in 2025.
According to traders, Bulog is looking for white rice milled less than six months ago with a 5 percent broken grade from the 2024 crop year for the new tender.
