The Indonesian National Logistics Agency (BULOG) announced on February 1 that seven Vietnamese companies had won a bid to export 300,000 tonnes of rice to the country.

In January, BULOG announced the bidding process for the import of 500,000 tonnes of rice to increase the country’s food reserve. The rice provided needs to be harvested in the 2023-2024 period and be processed less than six months ago. Suitable sources included Vietnam, Thailand, Myanmar, Cambodia, Pakistan, India, and China.

With the February 1 announcement, Vietnamese companies will be in charge of providing 60 per cent of the 500,000 tonnes of rice Indonesia plans to import, or eight of the 17 bidding packages offered by BULOG.

The lowest quote submitted by the Vietnamese companies was $648 per tonne, including transportation costs. Of the seven Vietnamese companies that won bids, the Loc Troi Group secured the highest quantity, with 65,000 tonnes.

The winning bidders are required to deliver the rice in February and March, coinciding with Vietnam’s winter-spring harvest season.

In 2023, Indonesia approved an import quota of 3.8 million tons of rice, but BULOG was able to secure only 2.74 million tons, with over 1 million tons coming from Vietnam.

Recently, the Indonesian Government has approved an import quota of 2 million tonnes of rice for 2024, which means BULOG will have to acquire a total of 3.06 million tonnes this year.

According to the Vietnam Food Association (VFA), the average price for 5 per cent broken rice from Thailand is the highest in the world, at $653 per tonne, while Vietnamese rice is priced at $639 and Pakistani rice $637.