NFA sets initial rice importation target for 2012 at 500,000MT

MANILA, Philippines - The National Food Authority (NFA) Council has decided to set an initial rice importation target of 500,000 metric tons for next year.

This was announced yesterday by Agriculture Secretary Proceso J. Alcala following a meeting by the NFA Council.

Alcala said that the NFA Council has set another meeting in mid February 2012 to assess if there would be a need for additional importations.

The Department of Agriculture is hoping that its quick turn-around (QTA) program would yield additional rice that would ronder further importations unnecessary.

Alcala likewise said that the importation of the initial 500,000 MT would be divided equally between farmers’ cooperatives, with each group getting an allocation of 250,000 MT.

The private sector and the farmers’ cooperatives would again be allowed to use the NFA’s Tax Expenditure Fund.

Alcala said the NFA would not do the actual importation but would concentrate on purchasing palay. He did not say how much has been allocated for the NFA’s palay purchase.

However, Alcala said the NFA could take over the importation if the private sector “does not deliver.”

Alcala sai that the NFA Council opted to limit the initial importation to 500,000 MT “so we do not get burned if we import too much.”

Alcala also indicated that the possible source of rice imports would be Vietnam, although he qualified that it would really be up to the traders.

“The private sector will decide wherever they can get the cheaper rice,” Alcala said.

Thailand, Alcala noted, would be the source for high-end rice.

Last year, total rice importations reached 860,000 MT, of which 660,000 MT was imported by traders and 200,000 MT by the NFA following the unexpected devastation caused by a series of typhoons.

Alcala remains hopeful that the Philippines remains on-track with its rice self-sufficiency goal by 2013.

Sources privy to the NFA Council meeting revealed that two scenarios were presented to the council.

The first scenario projected a per capita consumption of 119.1 kilograms which would require rice imports ranging from one million MT to 1.4 million MT.

The second scenario assumes a per capital consumption of 113.4 kg which would require an import range of 515,000 to 880,000 MT.

The 500,000 MT importation, sources said, assumes “all production forecasts are achieved.”