Philippines rice tender could be a failure-official

MANILA (Reuters) - The Philippines, the world's biggest rice importer, holds a tender for 675,000 tonnes on Monday, but one official said the bidding could be declared a failure because only one firm was likely to participate.

Manila's National Food Authority (NFA) has said that only firms with government backing will be allowed to participate in the tender, and Vietnam's state-owned Vinafood II is likely to be the only one qualifying, said the NFA official, who spoke on condition of anonymity.

He said nine trading houses had expressed interest in bidding but added: "I think only Vinafood would be able to get state backing. It would be difficult for the others. I think we will only have one bidder."

Under bidding rules, the bids and awards committee can declare the tender a failure if there is only one bidder, although it need not necessarily do so.

If the tender is declared a failure, it can be rebid or there could be government-to-government negotiations.

International markets have been looking to Monday's tender as an important pointer on whether surging rice prices have peaked. Manila paid an average of about $1,136 per tonne, cost and freight included, at its last auction in April, up 60 percent from an auction in March.

The Philippines has imported about 1.6 million tonnes of rice so far for 2008 and has said this should be its last major purchase for the year.

Agriculture officials have said the country has enough rice to meet demand but is building up buffer stocks ahead of a lean season for domestic rice beginning in July.

(Reporting by Carmel Crimmins; editing by Raju Gopalakrishnan and Ben Tan)