Cambodia priced out of Filipino rice tender again - Costs thwart potential exports

Cambodia has lost a 100,000-tonne Filipino rice bid to Vietnam, on account of a higher costs as compared to regional competitors, marking the fourth time the Kingdom has failed to win a rice tender issued by the Philippines.

The Philippines National Food Authority last week awarded the tender to Vietnam Southern Food Corp based on its offer of $416.85 per tonne, a little higher than the reference price of $408.15 per tonne set during the tender, according to the Philippine Star.

Thailand’s offer was marginally higher than Vietnam’s, $417 per tonne, but Cambodia’s final bid of $455.50 per tonne was way above the reserve price. All three countries were asked to revise their initial bids after they were deemed too high by the Philippines.

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read more: http://www.phnompenhpost.com/business/cambodia-priced-out-filipino-rice-tender-again

Following Cambodia’s loss of a hefty Filipino rice tender to Vietnam last week, industry insiders say logistics and production costs are hampering the competitiveness of the Kingdom’s rice exports.

Cambodia lost a 100,000-tonne tender for the fourth time running after its final price of $455.50 per tonne came in way higher than the Vietnamese company’s final $416.85 per tonne deal, itself only marginally lower than Thailand’s $417.

The higher prices begin at the local level, said Khan Kunthy, head of BRICO, a rice miller established in 2013.

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read more: http://www.phnompenhpost.com/business/costs-thwart-potential-exports