LG to sell rice to RI

LG to sell rice to RI

SEOUL (Reuters): South Korea's LG International Corp plans to sell 100,000 tons of Vietnamese rice to Indonesia for shipment between August and October this year, trade sources said yesterday.

They said LG International, a unit of the LG Group, had offered long grain rice at around US$270 a ton, but the Indonesian government was asking $20 a ton lower than that price.

The company was seen offering lower grade rice of 25 percent broken, the trade sources said.

"LG International may be able to negotiate the deal, but it is unlikely that LG would win the deal due to tough competition in the market," said a trade source, who asked not to be identified.

Other competitors like Vietnam and Japan may be in a better position as they were also providing food and other aid to the financially stricken country, he said.

An official from the Vietnam government office said on Friday the state-owned Southern Food Company intended to sell 100,000 tons of rice to Indonesia on deferred payment in addition to providing a free shipment of 10,000 tons.

Trade sources in Seoul said Kolon International Corp was also planning to sell agricultural products, including necessities like sugar or wheat flour, to Indonesia.

Kolon had previously sold 25,000 tons of Vietnamese rice to Indonesia for delivery in April, they said.

The deal for lower grade rice of 10 percent broken was made at over $300 a ton, C&F, they said.