Manila open to buying 60,000 MT of rice from Japan
By Amy R. Remo
Philippine Daily Inquirer
First Posted 01:53:00 07/02/2008
Agriculture Secretary Arthur Yap said the government was open to purchasing as much as 60,000 metric tons of long grain white rice from Japan, as long as the terms are right.
“We’re doing careful computations. We can sign the deal this July or next month. It depends on the agreement on the specifications and prices,” Yap said at a news briefing.
Yap said Japan had offered to sell to the Philippines 140,000 metric tons of medium grain rice and 60,000 metric tons of long grain white rice.
“We did tell them that in terms of specs, we’re open to the long grain rice because that’s what’s consumed in the Philippines,” he said. “We also told them we have slight reservations in importing medium grain rice because the last time the National Food Authority imported this, it took years to dispose of it.”
Yap said the government had informed Japan of the Philippines’ “volume appetites, so we’re waiting for an official word in writing to tell us exactly what their comfort levels are.”
Yap said the discussions already included import charges. “The Japanese minister has consistently informed me that they do not want to profit from this shipment, so they will not charge market rates for it,” he said. They will not try to make money out of these stocks.”
He said the Japanese government would price the rice based on the acquisition cost.
“I’m just clarifying what this costing will exactly be, if it includes storage, level of interest rates, acquisition costs. I need to see it in black and white,” he added.
Yap said the long grain rice from Japan would be affordable, considering that the volume had been stockpiled for more than a year.
“It’s a class by itself,” he said. “The price of the staple in the open market back then is definitely lower than the current market prices.”
Prices of rice on the international market have softened, with the benchmark Thai 100-percent Grade B offered at $740-$840 a metric ton, FOB, as of June 30.
In March, the price of rice reached an average of $780 a metric ton before hitting a peak of more than $1,000 in April on the back of the large purchases by the Philippines and export curbs by producing nations.
The Philippines, which has become the world’s biggest rice importer, had procured 2.3 million metric tons of rice as of mid-June, following the closing of a deal with Vietnam on about 600,000 metric tons.
The government has raised its import quota to 2.4 million metric tons from 2.1 million in a bid to ensure at least a 30-day stockpile until the end of the year. With editing by INQUIRER.net
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