Voluntary Report - public distribution

**Date:** 2007/3/23

**GAIN Report Number:** TW7012

TW7012

**Taiwan**

**Grain and Feed**

**Private Trade Rice Quota Allocation Results for the 2nd Tranche**

**2007**

**Approved by:**

![](media/image1.wmf)Alan Hallman

American Institute in Taiwan

**Prepared by:**

Chiou Mey Perng

**Report Highlights:**

On February 16, a day before the Chinese New Year holidays, Taiwan
allocated the second tranche of 20,652 tons of 2007 private sector rice
quota to 31 Taiwan importers thru a competitive bidding process.
Importers were only willing to pay a weighted average of NT\$7.603/kg
for quota rights because of higher domestic production and the resulting
drop in domestic rice prices. The third tranche of the 2007 private
sector rice quota will be allocated on April 30, 2007. In 2006, Taiwan
imported 50,620 tons of rice with 99.94 percent of quota fill rate for
its private sector rice imports.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Taipei \[TW1\]

\[TW\]

**Private Sector Allocations for 2007, Second Tranche**

On February 16, Taiwan allocated 20,652 tons of the 2007 private sector
rice quota to thirty-one Taiwan importers thru competitive bidding.
Sixty local importers participated in the process and half of them were
awarded quota allocations at prices ranging from NT\$7,200/kg to
NT\$9.600/kg. The weighted average price was NT\$7.603/kg or \$231/mt
(See Table 1).

(The current exchange rate is \$1=NT\$32.91, quoted on February 16,
2007). The difference between the maximum and minimum bids was lower
this time, and the weighted average price was lower, too, compared to
previous year's performance (See Table 2). Taiwan importers are
developing something of a consensus in offering bid prices for the quota
rights as they gain experience in the rice import business. Any increase
in market risks is reflected in lower bid prices. For example, in 2007's
first tranche high world rice prices led to a decrease in the price
advantage of imported rice over domestic rice. In biding for this
tranche, they bid lower prices due to an increased domestic rice
production and lower domestic rice prices.

These quota rights are valid from January 1 thru September 15, 2007 and
are eligible for an extension to December 31, 2007. The third tranche of
15,000 tons of rice quota will be allocated on April 30 thru a
competitive bidding process.

**Table 1. Taiwan 2007 Rice TRQ Allocation Results -- 1^st^ Tranche**

+------+------+--------+--------+-------+---------+--------+---------+
| Pro  | **Q  | *      | Allo   | *     | Max.    | Min.   | \# of   |
| duct | uota | *Quota | cation | *Aver |         |        | Allo    |
| Name | Amou | Va     | Date   | age** | Bid     | Bid    | cations |
|      | nt** | lidity |        |       | Price   | Price  |         |
|      |      | Dura   |        | **Bid |         |        |         |
|      |      | tion** |        | Pr    |         |        |         |
|      |      |        |        | ice** |         |        |         |
+------+------+--------+--------+-------+---------+--------+---------+
| Rice | **15 | **Jan. | Nov.   | **N   | NT\$14  | NT\$9. | 41      |
|      | ,000 | 1/     | 24     | T\$9. | .500/kg | 098/kg |         |
|      | mt** | Sept.  |        | 821** |         |        |         |
|      |      | 15**   |        |       |         |        |         |
+------+------+--------+--------+-------+---------+--------+---------+
|      | **20 | *      | Feb.   | **N   | NT\$9   | NT\$7. | 31      |
|      | ,652 | *March | 16     | T\$7. | .600/kg | 200/kg |         |
|      | mt** | 1/\    |        | 603** |         |        |         |
|      |      | Sept.  |        |       |         |        |         |
|      |      | 15**   |        |       |         |        |         |
+------+------+--------+--------+-------+---------+--------+---------+
|      | **15 | **May  | Apr.   | *     | NA      | NA     | NA      |
|      | ,000 | 1/\    | 30     | *NA** |         |        |         |
|      | mt** | Sept.  |        |       |         |        |         |
|      |      | 15**   |        |       |         |        |         |
+------+------+--------+--------+-------+---------+--------+---------+
| T    | **50 |        |        |       |         |        |         |
| otal | ,652 |        |        |       |         |        |         |
|      | mt** |        |        |       |         |        |         |
+------+------+--------+--------+-------+---------+--------+---------+

**Table 2. Taiwan 2006 Rice TRQ Allocation Results**

+------+------+-------+--------+-------+---------+---------+---------+
| Pro  | **Q  | **    | Allo   | *     | Max.    | Min.    | \# of   |
| duct | uota | Quota | cation | *Aver |         |         | Allo    |
| Name | Amou | Val   | Date   | age** | Bid     | Bid     | cations |
|      | nt** | idity |        |       | Price   | Price   |         |
|      |      | Durat |        | **Bid |         |         |         |
|      |      | ion** |        | Pr    |         |         |         |
|      |      |       |        | ice** |         |         |         |
+------+------+-------+--------+-------+---------+---------+---------+
| Rice | **15 | *     | Nov.   | **NT  | NT\$16  | NT\$13  | 41      |
|      | ,000 | *Jan. | 28     | \$14. | .500/kg | .510/kg |         |
|      | mt** | 1/    |        | 076** |         |         |         |
|      |      | Sept. |        |       |         |         |         |
|      |      | 15**  |        |       |         |         |         |
+------+------+-------+--------+-------+---------+---------+---------+
|      | **20 | **    | Feb.   | **NT  | NT\$15  | NT\$12  | 34      |
|      | ,652 | March | 27     | \$12. | .003/kg | .090/kg |         |
|      | mt** | 1/\   |        | 450** |         |         |         |
|      |      | Sept. |        |       |         |         |         |
|      |      | 15**  |        |       |         |         |         |
+------+------+-------+--------+-------+---------+---------+---------+
|      | **15 | **May | Apr.   | **NT  | NT\$14  | NT\$12  | 16      |
|      | ,000 | 1/\   | 28     | \$12. | .000/kg | .210/kg |         |
|      | mt** | Sept. |        | 432** |         |         |         |
|      |      | 15**  |        |       |         |         |         |
+------+------+-------+--------+-------+---------+---------+---------+
| T    | **50 |       |        |       |         |         |         |
| otal | ,652 |       |        |       |         |         |         |
|      | mt** |       |        |       |         |         |         |
+------+------+-------+--------+-------+---------+---------+---------+