Friday, March 16, 2012

[Philippines] Gov’t importing rice [from Cambodia] this year

Mar 16th, 2012
Tempo (Philippines)

Manila, Philippines – Finally, government has admitted that it is importing rice this year.

Barely a week after declaring that the National Food Authority (NFA) will not purchase rice overseas, Agriculture Secretary Proceso J. Alcala said the food agency will import rice through a government-to-government (G2) deal.

This time, the leading candidate to supply the 120,000 metric tons (MT) of rice under a G2G contract is Cambodia.

With that volume, the total rice importation for this year will be 500,000 MT, with the private sector snatching 190,000 MT and farmers’ cooperatives another 190,000 MT.

Alcala said he will not consent to any additional import volume.


Earlier, Philippine Confederation of Grains Associations (Philcongrains) president Herculano “Joji” Co said that he doubts that the government would not import rice this year.

Co said NFA is mandated to maintain a rice buffer stock under its charter and it must have grain in its warehouses to supply remote provinces and those hit by disasters, whether natural or man-made.

After visiting Cambodia recently, he noted the country is awash with rice like Myanmar and may become a big player in the global rice market in five years.

Most Cambodian farmers have their palay milled in neighboring Vietnam.

On the other hand, the purchase of rice from Cambodia, Myanmar, or Vietnam would affect the palay procurement program of the government.

Alcala stressed that it was the NFA Council that decided to import rice, with the stocks serving as buffer stock during the lean months.

The country has a daily rice consumption volume of 35,000 MT.

“We are looking at the possibility of importing rice through government to government deal,” Alcala said yesterday after addressing participants in a food security forum in Quezon City.

Alcala added the country has extended its rice supply agreement with Vietnam to next 2013.

He revealed that the Cambodian government has also expressed willingness to sell their rice to the Philippines.

“Even Cambodia is now proposing to have a memorandum of understanding with us. They are offering us cheaper rice,” Alcala said.

Earlier, the DA announced plans to import 500,000 MT of rice this year, with 380,000 MT to be secured by private companies and farmers’ cooperatives.

NFA-Bids and Award Committee member Atty. Gilberto Lauengco said the private sector auction for rice imports will be held on March 19, followed by the rice tender for farmers’ cooperatives and organizations on March 26. (Marvyn N. Benaning)

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