Nov. 19 (Bloomberg) -- The Philippines, the world’s biggest rice importer, may seek an additional 1 million metric tons before the end of the year, taking total purchases for 2010 to a record and boosting competition for global supplies.

The country may issue a tender on Dec. 15 and another a week later, according to a food authority official who asked not to be identified because he isn’t authorized to discuss import plans. The government is trying to fill a larger-than-usual shortfall after 1.3 million tons was lost in recent storms.

The Philippine purchases may drive prices of the staple higher. India is seeking shipments from Thailand and Vietnam after drought in the world’s second-most populous nation ravaged crops. Rice is the most important food in Asia.

“These tenders will surely send up rice prices on the international market as it is a relatively large volume in a short period of time,” said Cao Thi Ngoc Hoa, deputy chief executive at Vietnam Southern Food Corp. The company, known as Vinafood 2, is the country’s biggest exporter.

Rice futures in Chicago advanced for a second day, gaining 0.5 percent to $15.27 per 100 pounds at 12:21 p.m. in Singapore. The contract has jumped 36 percent since slumping to a low of $11.195 in March. The price reached a record $25.07 in April 2008 as concern that there may be a shortage prompted countries including Vietnam and India to curb exports.

India’s Talks

The Philippines has already tendered for 1.45 million tons for next year. The additional tenders for 1 million tons would take planned 2010 imports to 2.45 million tons, with orders set over the seven weeks through Dec. 22. That’s equal to 8.3 percent of estimated global trade.

India, the world’s second-largest grower and consumer, is seeking as much as 2 million tons, Thailand’s Prime Minister Abhisit Vejjajiva said late yesterday. The global rice trade will total 29.5 million tons next year, according to an estimate from the U.S. Department of Agriculture.

The benchmark export price of rice from Thailand, the world’s biggest shipper, has risen 6.9 percent from this year’s low of $525 a ton on Oct. 28. The price, announced weekly by the Thai Rice Exporters Association, was set yesterday at $561 a ton. It reached a record $1,038 a ton in May 2008.

The Philippine government panel reviewing the imports may have already authorized the purchase of an additional 600,000 tons, Jose Cordero, assistant administrator of the National Food Authority, said in a separate interview from Manila today.

The Philippines imported a record 2.4 million tons in 2008, when global prices surged. The additional purchases will depend on the country paying an average of no more than $500 a ton in two tenders for 600,000 tons each on Dec. 1 and Dec. 8, the official said.

Import Race

The National Food Authority purchased 250,000 tons of rice last month in the first tender for 2010 supplies. It bought 100,000 tons from Daewoo International for $468.50 a ton and 150,000 tons from Vinafood 2 at $480 a ton.

The country wants to secure supplies “ahead of everybody else,” Romeo Jimenez, director the state food buyer, said on Nov. 16.

“Vietnamese companies, including us, have prepared to join” the new tenders, Vinafood’s Hoa said by phone from Ho Chi Minh City today.

India lost 18 percent of its crop to drought. The South Asian nation may import as much as 3 million tons next year, turning it into a net importer for the first time in 21 years, Samarendu Mohanty, senior economist at the International Rice Research Institute, said on Oct. 28.

“Prices will remain firm, with India making loud noises about its intention to import rice,” Vijay Arora, president of the All India Rice Exporters Association, said in a phone interview from New Delhi today. “India may import rice more as a precautionary measure than its actual requirement.”

To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

Last Updated: November 19, 2009 00:23 EST