THE National Food Authority yesterday received offers of 325,750 tons of foreign rice against its requirement of 500,000 tons for delivery from April to June at prices ranging from 18 to 65 percent higher than it was prepared to pay.

The latest ender was for 400,000 tons of 25 percent broken grains, 50,000 of 15 percent broken and 50,000 of 5 percent broken. The NFA had told suppliers it had allotted P15.47 billion ($369 million at current exchange rates) for the programmed purchase or an average of $738 a ton (P32 a kilo).

Traders offered prices of $872.50 a ton (P36.50 a kilo) to $1,220 per ton (P51 a kilo) cost and freight, bid documents showed. Last January, prices averaged $474 a ton.

The NFA said bids came for 290,750 tons of 25 percent broken and 35,000 tons of five percent broken. There were no bids for the 15 percent broken variety.

It was the third consecutive rice import tender where NFA has been unable to secure the full requirement.

"We feel the price is really high," said Ludovico Jarina, NFA deputy administrator, after the opening of bids.

"Within the next five working days, we are either going to award or not."

It appears unlikely the NFA will refuse any offers.

"Quantity-wise, all the bids will be awarded," said a trader. "They need the supply for stability."

Jarina said that because of the unfilled requirement, an additional 100,000 tons will likely be added to another 500,000-ton tender to be held during the first week of May for delivery May-June.

The May tender, also for 25 percent broken, has a budget of P17.68 billion or $422 million. That gives an average of $844 a ton.

President Arroyo earlier said the May tender will be limited to state agencies.

Traders said Vietnam is Philippines’ best bet as Thailand rice is already selling at over $900 a ton. Thailand, moreover, is estimated to have stocks of only about 2.1 million tons, the level set by Bangkok as its national reserve.

Worried that hungry people could take to the streets, Arroyo is trying to ensure that there is no shortage of the staple during a lean period starting in July.

The Philippines imports about 10 percent of its rice needs. It has already bought 1.22 million tons for this year, at a cost of $626 million.

At its last rice tender in March, the government bought 335,500 tons at an average price of $708.04 per ton cost and freight, about one and a half times the price it paid in January. It got around 61 percent of the total volume it had wanted to buy.