Government allows additional rice imports in Q4

MANILA, Philippines - The Food Security Council (FSC) has approved the importation of a total of 750,000 metric tons of rice for the remainder of the year until early 2016 due to the expected destructive effect of the prevailing dry spell on rice production.

The FSC has recommended to the NFA Council the importation of an additional 250,000 MT for arrival in the last quarter of the year to boost the country’s rice stocks.

The committee has also approved the importation of 500,000 MT for arrival in the first quarter of 2016 to blunt the effects of an expected shortfall in production.

Arrival of the 250,000 MT of rice imports is programmed in two equal tranches -- by end-November and end- December.

Meanwhile, shipment of the 500,000 MT would be divided as follows: 175,000 MT by end-January, 175,000 MT by end- February and 150,000 MT by end- March next year.

NFA administrator Renan Dalisay said while domestic rice stocks remain sufficient until the end of the year, the FSC deemed it necessary to increase domestic stocks while prices in the international market are still low and stable.

“We want to secure the supply now to ensure that we also have buffer stock for early next year because supplies in the international market may be depleted because of the El Niño. We also want to take advantage of the low prices,” he said.

 The FSC is chaired by the National Economic Development Authority, with other members composed of the Department of Trade and Industry, Department of Finance, Philippine Atmospheric Geophysical and Astronomic Services Administration, Philippine Statistics Authority, Bangko Sentral ng Pilipinas, National Irrigation Administration, Department of Agriculture, and the National Food Authority.

 The NFA Council, on the other hand, is composed of the heads of the DOF, BSP, DTI, NEDA, NFA and state-run financial institutions Development Bank of the Philippines and Land Bank.

Dalisay said the NFA would prepare for the procurement of the supply under a government-to-government procurement scheme.

 Invitations have already been sent to Thailand, Vietnam and Cambodia—all of which have existing rice supply agreements with the Philippines—to participate in the tender of 250,000 MT of well-milled rice and 500,000 MT of well-milled rice.

 Pagasa expects the prevailing dry spell to intensify beginning October and to last until May 2016. The weather bureau said the El Niño phenomenon is comparable to the 1997-1998 dry spell when a 24 percent drop in rice production was experienced.

Among the rice producing provinces expected to be hit by El Niño are Isabela, Mindoro, Quezon, Albay, Aklan, Antique, Iloilo, South Cotabato, Sultan Kudarat and Zamboanga.

Dalisay said the FSC came up with the recommendation as a result of the assessment made by an inter-agency El Niño Task Force on the impact of the phenomenon on rice production.