With the signing of PL 480 loan and grant agreements slated for June 27 by the Department of Finance, the NFA said it is "more or less sure about getting this additional rice stock" from the United States.
The Philippine and US governments are set to sign the $20-million PL 480 loan package on June 27 (broken down as follows: $12 million for soybeans and $8 million for rice) the grant agreement of PL 480. The proceeds of the sale of rice will be used by the Department of Agriculture for its agriculture programs, including programs to mitigate the impact of El Niño.
Interviewed on the sidelines of the 39th anniversary of the Bureau of Agricultural Statistics at Bayview Hotel, NFA Deputy Administrator Gregorio Tan said the rice stocks under PL 480 should arrive by Aug. 31 or else shipment should be by early next year.
PL 480 loan covers only rice worth $8 million or 30,000 metric tons while Section 416-B of PL 480 (the grant provision) is for $8.4 million or 22,000 metric tons, Tan said.
Tan said the grant is more beneficial for the Philippines since "we do not have to pay for it just like the loan and yet we can monetize it and earn from such proceeds."
He said the timing of the shipment will depend on the availability of the vessel and the rice from the United States "so we do not know how fast we can bring these stocks in."
The Department of Agriculture has prepared since March for the signing of the PL 480 loan documents but the documents stayed with the DOF for sometime because of disagreements over the use of the loan proceeds.
The DA wanted that the proceeds be used to help fund its programs and projects while the DOF wanted the proceeds for budgetary support.
Earlier, DA Secretary Leonardo Q. Montemayor said after DA avails of the $20 million from PL 480, it would apply for another $20 million in soft loan and a $20 million grant. The processing until the scheduling of the signing, however, took almost three months.