What's Happening?
The Agro-Fisheries and Food Trade Corporation, a state-owned entity in South Korea, has announced an international tender to purchase 78,744 tons of rice. The tender includes 56,944 tons of non-glutinous
short grain brown rice from China and 1,800 tons of non-glutinous long grain milled rice from Thailand. Additionally, 20,000 tons of non-glutinous milled brewers rice may be sourced from any country. The deadline for price proposal submissions is November 5, and the rice consignments are expected to arrive in South Korea between December 15, 2020, and June 30, 2026. The corporation's strategy involves buying rice in advance for long-term delivery.
Why It's Important?
This tender is crucial for South Korea's food security and agricultural trade strategy. By sourcing rice from multiple countries, South Korea aims to diversify its supply chain and ensure a stable rice supply. The tender also reflects the country's efforts to manage domestic rice demand and price stability. For international rice traders, this tender represents a significant business opportunity, potentially impacting global rice trade dynamics. The tender's outcome could influence future trade relations between South Korea and major rice-exporting countries like China and Thailand.
What's Next?
The results of the tender will be announced a few weeks after the submission deadline. Traders must send rice samples to South Korea for analysis before a decision is made. The tender's outcome will determine the suppliers and the terms of rice delivery. This process may also set a precedent for future agricultural tenders by the Agro-Fisheries and Food Trade Corporation, influencing how South Korea manages its agricultural imports.
