The National Food Authority (NFA) says the price it paid for rice importations in 2008 for delivery from February to June the following year was still low.

NFA made the assertion in a document that detailed price movements from the time it concluded a government-to-government (G2G) contract to import various grades of rice in late 2008.

"The $549.50 price per metric ton (MT) can be compared with the prevailing world market price at the start of the arrival of imports. It can be noted that the world market price of rice started to go up in January 2009. As of February 4, 2009, the world market price of 5 percent brokens, 15 percent brokens and 25 percent brokens were computed at cost and freight (C&F) much higher," it said.

For 5 percent brokens, the price was $594 per MT free on board (FOB) but the additional costs from freight at $30, cost of money at $26.73, premium at $5 and other costs at 42 cents per MT caused the price to rise to $656.15 per MT, NFA claimed.

As far as the 15 percent brokens are concerned, the FOB cost was $543, freight was $30, cost of money was $24.44, premium was $5 and 42 cents for costs like surveyor's fee, fumigation and documentation driving the total price to $602.86.

The low-grade 25 percent brokens sold for $482, with freight at $30, cost of money at $21.69, premium at $5 and other costs at 42 cents for the final price of $539.11.

Given these prices, the $549.50 contract price led to savings of $7.5 million for the entire import cargo of 1.5 million MT (MMT), NFA argued.