Philippines Tenders Largest-Ever Rice Bid - 600K Tons - In Wake Of Typhoons, Flooding - AFP

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The Philippines will tender for a record 600,000 tonnes of rice to guard against potential supply shortfalls from crop damage caused by recent storms, officials said Tuesday.

The December 1 tender, the country's biggest ever, would likewise be a "forward-buying" operation in anticipation that prices may jump next year, a senior agricultural official told AFP.

The official conceded that such a huge order would likely push up international rice prices but said this could not be avoided. "There are rumours that India might be calling for a tender for a huge amount," said the official, who asked not to be named.

However, International Rice Research Institute economist Samarendu Mohanty said he did not expect to a spike. "The Philippine tender was expected so I don't expect the market to react," he told AFP. "The Indian drought situation could mean a significant loss in production this year (but) they have lots of stocks so they should be able to handle it in the short term."

EDIT

http://www.seeddaily.com/reports/Philippines_makes_biggest_ever_rice_tender_999.html