In an international tender by the Indonesian state purchasing agency, Bulog, to procure about 500,000 metric tonnes of rice, the lowest bid was reportedly $479 per tonne cost and freight (c&f) for rice expected to be sourced from Pakistan, according to European traders on Friday.
The lowest bid covered 26,000 tonnes of rice. Although no purchases have been confirmed yet, price negotiations are anticipated to continue in the coming days, with a final decision expected next week.
The tender is a reflection of traders’ assessments and future estimates of prices and volumes may still emerge. The delivery of rice to Indonesia is aimed for November to December, with potential sources including Thailand, Cambodia, Vietnam, Myanmar, Pakistan, or India. Price offers were submitted on Friday.
In addition to the lowest offer, two other bids for Pakistani rice were among the next lowest at $484 and $485 per tonne c&f. Comparatively, the lowest reported offers from other countries included $515 per tonne from Vietnam, $511 from Thailand/Cambodia, $513 from India, and $517.50 from Myanmar, with consignments ranging from 25,000 to 30,000 tonnes.
This tender is part of Indonesia’s ongoing effort to bolster rice supplies in the face of rising domestic prices following a disappointing local harvest. Indonesia’s 2024 rice output is projected at 30.34 million metric tonnes, a 2.43% decrease from the previous year, primarily due to a nearly 15% production drop in the January-April period.
To stabilize supply, Indonesia aims to import up to 3.6 million tonnes of rice this year. The country also plans to significantly increase its planted area in 2025 and is considering importing 1 million tonnes of rice from India in 2025.
In the current tender, Bulog is seeking white rice of 5% broken grade from the 2024 crop year, milled not longer than six months ago, traders said.
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