Phl secures 200,000 MT rice from Vietnam

MANILA, Philippines - The National Food Authority (NFA) has secured 200,000 metric tons of rice at $480 per metric ton under a government-to-government contract with Vietnam.

This was announced yesterday by NFA Administrator Angelito T. Banayo even as the NFA held a private sector tender for the importation of 600,000 metric tons of rice using the Tax Expenditure Fund (TEF) of the National Government.

The Aquino administration is securing 860,000 MT of rice to cover a shortfall between actual rice/palay production and consumption demand.

 The NFA has allotted the importation of the bulk or 600,000 MT to the private sector, 60,000 MT to farmers’ cooperatives and 200,000 MT directly by the NFA.

The tender/bidding for the 60,000 MT for farmers’ coops will be held on April 4.

According to Banayo, the Philippines opted to secure the 200,000 MT under a G to G contract with Vietnam as the Philippines already has an existing memorandum of agreement (MOA) with Vietnam for the supply of up to 1.5 million metric tons of rice.

Second, Banayo explained, the Philippines deemed it prudent to secure its rice requirement now because freight costs are increasing following political events rocking the Middle East.

Lastly, Banayo said, interest rates are moving up, with the Bangko Sentral ng Pilipinas (BSP) already indicating a series of gradual interest rate hikes intended to ease increasing inflationary pressures.

Under the G to G contract with Vietnam for the 200,000 MT of 25 percent broken rice, Banayo said, the Philippines would have 270 days to pay.

Delivery of the rice would be from April to June this year.

Any decision to import additional rice, Banayo said, would be made after April 7 when the Department of Agriculture’s Bureau of Agricultural Statistics (DA/BAS) firms up its first semester palay/rice production.

 Based on those figures, Banayo said, the NFA Council would decide and recalculate if there will be a need to import additional rice this year.

An Inter-agency Committee (IAC) has recommended the importation of up to 1.3 million this year, but the DA-NFA agreed on the importation of only 860,000 MT, leaving a possible balance of 440,000 MT should the need arise for more rice imports.

Banayo said the Philippines is also in the process of concluding another MOA with Thailand for the supply of up to one million metric tons of rice.

There are also talks with Cambodia. However, Banayo said, both countries are still verifying their capability to supply such an agreement.

Banayo said India has also written the Philippines regarding the possible supply of rice on a G to G basis.

In the past, Banayo said, India had limited its supply to premium basmatic rice. However, Banayo said, India indicated that it may agree to sell cheaper rice on a G to G basis and not on a commercial basis.