April 17 (Bloomberg) -- The Philippines, the world's biggest rice importer, received offers for just two-thirds of the grain it sought at a government tender today, stoking concern about a food shortage amid record prices.

Suppliers offered 325,750 metric tons compared with the 500,000 tons tendered for, according to a tally from the National Food Authority. Prices were more than 40 percent higher than the last tender in March, which also fell short of requirements.

Rice, the staple food for half the world, has jumped on concern there's a shortage in the global market as exporters including Vietnam cut shipments to protect domestic supplies. A global food crisis has reached ``emergency proportions,'' United Nations Secretary-General Ban Ki-Moon said April 14.

``The price Vietnam offered today is shocking,'' Chookiat Ophaswongse, president of the Thai Rice Exporters Association, told reporters in Bangkok. ``I wonder if the Philippines can afford it.'' Vietnam is the world's second-biggest rice exporter after Thailand.

Rice for May delivery rose as much as 57 cents, or 2.5 percent, to a record $23.12 per 100 pounds (45 kilograms) on the Chicago Board of Trade. The contract, which has more than doubled in the past year, was at $23.095 at 5:47 p.m. Singapore time.

``We can't really cut down on rice because that's our main staple,'' Edwin Sudiacal, 31, a security guard in Manila said today. He said he's forced to buy costlier rice at commercial outlets as there aren't enough state-subsidized supplies.

`Too High'

``Prices are just too high,'' National Food Authority Deputy Administrator Vic Jarina said today. ``We will review the bids and decide whether we'll have more tenders.''

Suppliers offered various grades in today's tender at between $872.50 a ton and $1,220 a ton, including freight costs, according to data from the National Food Authority. That compares with the March price range of $618.15 to $747.

Another 500,000 ton tender has already been scheduled for May 5. That round of purchasing may be increased by 100,000 tons, Jarina said.

The gain in food costs, driven also by record wheat and energy prices, has fanned inflation and prompted warnings civil unrest could spread. The Philippine rice supply ``is secure for the foreseeable future,'' President Gloria Arroyo said April 15.

``Some importers, especially in Southeast Asia, are feeling pinched as supplies are very tight,'' Shuji Sugata, research manager at Mitsubishi Corp. Futures & Securities Ltd. in Tokyo, said by phone today.

China, Egypt, Vietnam and India, representing more than a third of global rice exports, have curbed sales this year.

Import Needs

The Philippines imported 1.9 million tons of rice last year, about 15 percent of local needs. About 10 percent of the rice consumed in the Philippines is subsidized, according to Royal Bank of Scotland Group Plc analysts Sanjay Mathur and Euben Paracuelles in a note published on April 15.

The Philippines had planned to spend 15.47 billion pesos ($369 million) on today's tender to buy 400,000 tons of 25 percent broken rice, and a further 100,000 tons of 15 percent and 5 percent broken rice, according to a note sent to suppliers.

The Philippines needs to have 2.1 million tons of rice shipped by July to ensure a stable supply between June and August when local production is at its lowest, National Food's Jarina said. The country has purchased 1.2 million tons for delivery this year in tenders since December.

Emergency Stockpile

Philippine Agriculture Secretary Arthur Yap said March 12 that there are plans to buy rice from an emergency regional stockpile as well as secure extra supplies from the U.S.

``We'll review how much rice we could get from the Southeast Asian Emergency Rice Reserve, and from the loans from the U.S.,'' Jarina said today. ``If we're still short, maybe add up to 100,000 tons to the volume for the next tender.''

The results of rice tenders are usually announced a few days after offers are received.

Sudiacal, the security guard in Manila, said he'll cut down on meat purchases as food costs escalate. ``The only good thing about that is there's less risk of getting high blood pressure from eating fatty dishes,'' he said.

To contact the reporter for this story: Luzi Ann Javier in Manila ljavier@bloomberg.net

Last Updated: April 17, 2008 07:34 EDT