MANILA, Philippines -The National Food Authority (NFA) is set to decide this week on key policy issues regarding rice imports this year in the face of another possible global food crisis due to climate change.
NFA administrator Angelito Banayo said that the NFA council is set to meet this week to decide on several key policy issues regarding the amount of rice to be imported this year, buffer stock and import allocation for the private sector.
According to Banayo, the NFA would have to decide how much rice it will have to import this year in the face of possible increase in demand from other countries whose own rice production has been adversely affected by climate change and also lower supply from normally rice exporting countries.
For instance, Banayo said, “for the longest time, Indonesia was not not importing, last year they imported. This year they are importing heavily.”
“Vietnam before was ready to supply rice, now there is Indonesia. So we are quite worried of a shortfall in supply,” he added.
Furthermore, Banayo cited, because of the flooding in Australia which affected wheat production, “I told President Aquino it would affect rice prices.
Banayo also discussed a possible need to adopt some flexibility in maintaining a longer buffer stock period instead of the 30-day buffer stock the Aquino Administration had decided on because of current global sentiment.
According to Banayo, it may be prudent to adopt a 40-day or slightly more buffer stock period.
The NFA Council, thus, would have to decide on this along with the doubling of the import allocation for the private sector.
Banayo said that last year, the private sector was allowed to import 200,000 metric tons. Thus, this year, that amount may be doubled.
All these issues, he said, must be decided on in the first quarter of this year so that all biddings can be scheduled within the quarter.
He stressed that such decision cannot be delayed beyond the first quarter because the rice shipments have to be taken into consideration and should go beyond a certain time period.