RP buys rice from Thailand, Vietnam

The Philippines, one of Asia’s largest rice buyers, said yesterday it bought 100,000 tons of the grain from Thailand and Vietnam and has sought tenders to import an additional 150,000 tons for buffer stocks.

Officials of state trading firm National Food Authority (NFA) told a news conference the government bought 50,000 tons of 25 percent broken rice from Thailand at $207 per ton, including cost and freight (C&F), and another 50,000 tons of the same grade of rice from Vietnam at $205.80 per ton C&F.

NFA Administrator Anthony Abad said the fresh rice imports should arrive in the country before Oct. 15.

The government has also sought tenders for the supply of another 150,000 tons of rice from China, Thailand and Vietnam, also for arrival before Oct. 15.

Abad said that while this year’s rice supply is already secured with total rice importations of 1.14 million metric tons (MT), supply next year is still seen to be tight with weather experts forecasting that El Niño will last until the second semester of 2003, causing more delays in rice-planting.

"We already have sufficient supply for 2002, but next year is another question," Abad said, adding that importation might even be done earlier to take advantage of the expected lower prices in the international market.

Abad said NFA prefers to buy imported rice in the first quarter instead of the second quarter when government usually brings in the commodity to stave off rising prices during the lean season but declined to confirm the volume to be brought in.

"A decision has to be made early but we still have to wait for the final number from the Bureau of Agricultural Statistics which will conduct a survey on areas affected," Abad said.

NFA Deputy Administrator Gregorio Tan Jr. said that the fourth quarter harvest which begins in October is expected to be at a record high with estimated yield of five million MT, a huge chunk of which will come from the carryover of the third quarter harvest which was delayed because of the late planting in major rice producing areas which experienced scant rainfall.

"There is an overlapping of harvest, so the volume appears to be significantly large, but numbers show that even with that yield, there is still a need to import rice," said Tan.