Indonesia's Bulog announces new buy tender for rice in May

Indonesia -- one of the world's largest rice importers -- has announced a new tender to purchase 300,000 mt of 5% broken white rice in May, according to state-owned purchasing agency Bulog, potentially supporting rice prices in the region.

The deadline for bidding on the tender is May 14, with the requirement that the rice be from the 2022-23 (July-June) crop year and milled no later than six months, according to Bulog's announcement May 11.

Indonesia has so far issued five tenders in 2024, purchasing 1.7 million mt of rice. Vietnam, Thailand, Myanmar and Pakistan have been the major suppliers to the Southeast Asian nation this year.

The Indonesian state purchasing agency has set an import quota of 3.6 million mt for 2024 against last year's 3.8 million mt, as prolonged dry conditions attributed to the El Nino weather pattern reduced yields and output in Southeast Asia and tightened global rice supplies.

Bulog's purchases are seen as a boost to the Asian rice trade, as prices typically surge even at the faintest hint of the state agency's purchase talks, market sources said.

"Vietnamese and Thai rice prices are firming up as Bulog's tender is around the corner [in May]," an exporter in Pakistan said.

Platts, part of S&P Global Commodity Insights, assessed Thai 5% broken white rice FOB up $10/mt on the week at $599/mt on May 10, while Vietnamese 5% broken white rice FOB was assessed up $5/mt at $569/mt over the same period.

Rice prices are expected to rise in the coming days, with Bulog's tender announcement and the absence of top exporter India likely to provide support, market sources said.