"We have to position early on because of the projected tightness in world stocks next year that could considerably raise prices," said NFA Administrator Gregorio Tan Jr.
Tan noted that the world’s biggest rice exporter, Thailand, temporarily suspended its exports in September-October to secure its domestic requirements.
On the other hand, China’s rice imports have been steadily increasing in recent years to feed the country’s burgeoning population while Chinese farmers have been shifting to high-value commercial crops.
"We have to ensure that we have ample supply to stop potential speculation that would result in higher prices of rice in the world market," said Tan, adding that rice prices are expected to increase along with the increasing fuel and transport costs.
Tan said the initial volume to be imported by the NFA is expected to come by end-January after the harvest season and it should not dampen domestic rice prices.
He said the final import requirements of the country will be determined after the Bureau of Agricultural Statistics (BAS) completes its crop production survey early next year. – Rocel Felix