Bangladesh tenders to import 50,000 tonnes of rice

DHAKA (Reuters) - Bangladesh has launched an import tender for 50,000 tonnes of rice to boost its emergency food stocks, officials said on Saturday, after traders ignored an earlier tender because of high global rice prices.

Bangladesh faces acute food shortages after floods and a cyclone last year, and the need for emergency food stocks has become more urgent because global commodity price inflation is pushing food prices beyond the reach of many of its people.

Traders said they had ignored an earlier tender that closed on Wednesday for 25,000 tonnes of white rice because of the high price in the international market. A food ministry official regretted the unusual lack of response.

The new tender, issued by the Food and Disaster Management Ministry for non-basmati parboiled rice, will close on May 6 and will run until May 26, for shipment within 30 days of the date of signing the contract.

The tender price has to be quoted separately for the country's Chittagong and Mongla ports, based on the cost of cargo, insurance and freight including stevedoring on the seller's account, at both ends of shipment.

The country's army-backed interim government had planned to increase emergency food stocks to 3 million tonnes of rice and wheat in the 2008-09 financial year (July-June), up from 1.5 million tonnes stocks expected this fiscal year.

Bangladesh has just started its main boro rice harvest, which is forecast to produce 17 million tonnes of rice.

The retail price of 1 kg of rice and wheat has now risen by 100 percent to 40 taka and 45 taka respectively in early 2007, due to two spells of floods and a devastating cyclone last year, along with global food price inflation.

Bangladesh has launched a drive to buy 1.5 million tonnes of rice and another 50,000 tonnes of wheat from domestic farmers, officials said.