Voluntary Report - public distribution

**Date:** 2/4/2004

**GAIN Report Number:** TW4006

TW4006

**Taiwan**

**Grain and Feed**

**Results of 2nd Private Sector Rice Quota Allocation**

**2004**

**Approved by:**

![](media/image1.wmf)Jonathan Gressel

American Institute in Taiwan

**Prepared by:**

Chiou-Mey Perng

**Report Highlights:**

On February 4, Taiwan allocated the second tranche of 20,652 mt of the
2004 private sector rice quota. The quotas were awarded to 16 importers
out of 75 bidders through a competitive bidding at prices ranging from
NT\$12.000/kg to NT\$10.368/kg, with a weighted average of
NT\$10.954/kg. The weighted average was NT\$0.627/kg higher than for
first tranche, indicating a continued healthy market for imported rice.
The remaining 20,000 metric tons of quota will be allocated on April 14,
2004. Exchange rate: NT\$33.27 = U.S.\$1.00.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Taipei \[TW1\]

\[TW\]

**Private Sector Allocations for 2004, Second Tranche**

On February 4, Taiwan allocated the second tranche of 20,652 mt of the
2004 private sector rice quota (see Table 1). The quotas were awarded to
16 importers out of 75 bidders through a competitive bidding at prices
ranging from NT\$12.000/kg to NT\$10.368/kg, with weighted average at
NT\$10.954/kg. (Current exchange rate is \$1 = NT\$33.27).

These import rights will be valid from April 1 to September 15, 2004.
Compared to last tranche's prices, both the maximum and minimum bid
prices and average prices were much higher. The higher bid prices point
toward a better market situation for imports in the short term. Just a
month ago, one importer forfeited the performance bond on import quota
rights for 1,500 mt of the first tranche due to his relatively high bid
of NT\$11.000/kg. Taiwan re-allocated the 1,500 mt rice quotas to 7
importers at prices ranging from NT\$11.000/kg to NT\$9.902/kg, with a
weighted average at NT\$10.077/kg. (Bidders are required to pay 10% of
their total bidding price as a tender performance bond. That is the
penalty of bidders if they drop out the tender.)

###### Table 1. Taiwan 2004 Rice TRQ Allocation Results

+------+--------+------------+--------+-----------+----------+--------+
| Pro  | Quota  | Quota      | Allo   | Max.      | Min.     | \# of  |
| duct | Amount | Validity   | cation |           |          | Alloc  |
| Name |        | Duration   | Date   | Bid Price | Bid      | ations |
|      |        |            |        |           | Price    |        |
+------+--------+------------+--------+-----------+----------+--------+
| Rice | 10,000 | Jan. 1/    | Nov.   | NT\$      | NT\$     | 14     |
|      | mt     | Sept. 15   | 28     | 11.011/kg | 9.800/kg |        |
+------+--------+------------+--------+-----------+----------+--------+
|      | 20,652 | April      | Feb. 4 | NT\$      | NT\$1    | 16     |
|      | mt     | 1/Sept. 15 |        | 12.000/kg | 0.368/kg |        |
+------+--------+------------+--------+-----------+----------+--------+
|      | 20,000 | June       | Apr.   | nil       | nil      | Nil    |
|      | mt     | 1/Sept. 15 | 14     |           |          |        |
+------+--------+------------+--------+-----------+----------+--------+
| T    | 50,652 |            |        |           |          |        |
| otal | mt     |            |        |           |          |        |
|      |        |            |        |           |          |        |
|      | (Note: |            |        |           |          |        |
|      | The    |            |        |           |          |        |
|      | per    |            |        |           |          |        |
|      | ki     |            |        |           |          |        |
|      | logram |            |        |           |          |        |
|      | we     |            |        |           |          |        |
|      | ighted |            |        |           |          |        |
|      | bid    |            |        |           |          |        |
|      | prices |            |        |           |          |        |
|      | were   |            |        |           |          |        |
|      | NT\$   |            |        |           |          |        |
|      | 10.327 |            |        |           |          |        |
|      | for    |            |        |           |          |        |
|      | the    |            |        |           |          |        |
|      | first  |            |        |           |          |        |
|      | tranch |            |        |           |          |        |
|      | and    |            |        |           |          |        |
|      | NT\$   |            |        |           |          |        |
|      | 10.954 |            |        |           |          |        |
|      | for    |            |        |           |          |        |
|      | the    |            |        |           |          |        |
|      | second |            |        |           |          |        |
|      | t      |            |        |           |          |        |
|      | ranch) |            |        |           |          |        |
+------+--------+------------+--------+-----------+----------+--------+

# Private Quota Utilization in 2003

According to local importers, all the 2003 rice import quota rights had
been utilized, which means private sector rice imports in 2003
approximately equaled to 50,652 mt, the full amount of private import
sector rice quota.

**Public Tender Schedule for 2004**

The public sector rice import tender schedule will be available in the
near future. Taiwan established on January 30, 2003 a new agency, the
Food and Agriculture Administration (FAA) that is in charge of rice,
among other foods. After the new office starts its full operation in a
week or so, we expect the tender schedule to be announced.