Iraq buys 60,000 tonnes rice from Pakistan, Uruguay

HAMBURG: Iraq's state grains buyer purchased a total of around 60,000 tonnes of rice in an international tender which closed this week, European traders said on Thursday.

Some 30,000 tonnes will be sourced from Pakistan and 30,000 tonnes from Uruguay, they said.

The Pakistani rice was purchased at $416 a tonne c&f free out. Pakistani rice had been offered at the lowest price in the tender although the country has not been offered in Iraq's purchase inquiries recently.

The Pakistani purchase is made under the additional condition that a sample must be submitted to Iraq's state grain board before contracting. A delegation from the grain board must also attend the loading of the cargo, traders said.

The rice from Uruguay was purchased $580.50 a tonne c&f free out, traders added.

The tender had closed on Sunday, Aug. 27, with offers having to remain valid up to Thursday.

Volumes in Iraq's tenders are nominal and the country can buy more than requested in the tender.

Iraq made no purchase in its previous international tender to buy rice which closed on July 30.

The country has been struggling to import grain for its food subsidy programme after introducing new payment and quality terms that left trading houses unwilling to participate in its international tenders.

Iraq is expected to produce about 250,000 tonnes of rice this year, suggesting the country will face a shortfall of about 1 million tonnes, which will need to be covered by imports.