PRIVATE traders mostly stayed away from a rice import tender yesterday, hoping supplies will increase and prices ease on international markets in coming months.

The private traders and groups offered to buy only 21,560 tons out of a total of 163,000 tons on offer at the tender conducted by the National Food Authority.

Traders and NFA officials said both the government and the private sector would wait until prices soften before returning to market.

"If Thailand and Vietnam harvest earlier, as they have indicated, then there will be additional volume in the world market," said NFA assistant administrator Conrad Ibanez. "Yes, there is a possibility that prices will fall."

Robert Hernandez, a private trader who participated in the auction, added: "Prices are high outside and there is a lack of supply. So if we commit to buy a high volume and then cannot do it, we will be stuck."

The importers were allowed to bid for up to 98,000 tons from Thailand, 25,000 tons each from India and China and 15,000 tons from Australia.

NFA officials said the private groups offered to buy 21,060 tons of rice from Thailand and 500 tons from China.

They are subject to a price cap of $1,200 per ton cost and freight but will have to settle prices themselves with overseas sellers and complete the deals by August 31.

They also have to pay a service fee to the NFA.

Asian rice prices have almost trebled this year and prices on the Chicago Board of Trade have risen more than 80 percent to hit successive record highs as export restrictions by leading suppliers fuel insecurity over food supplies.

Jollibee, the leading fast-food chain in the country, was among the bidders at the tender in an effort to secure rice supplies.

President Arroyo has personally intervened with Vietnamese Prime Minister Nguyen Tan Dung to secure up to 1.2 million tons of rice for this year.

She has also attended prosecution proceedings against traders accused of hoarding in an effort to underline the crackdown on anyone trying to take advantage of the situation.

The Philippines has so far bought about 1.7 million tons of rice for this year but has said it will need 2.2 million tons.

NFA officials say they now have enough to meet demand and any remaining imports this year will be to boost buffer stocks, especially during a lean period in the third quarter.

Last week, the NFA scrapped a tender for 675,000 tons it had aimed to buy itself and said it would wait for prices to soften before returning to the market. – Reuters