The government is pushing through with the importation of 300,000 metric tons (MT) of rice after the state-owned Philippine International Trading Corp. (PITC) opened the bidding to interested governments and state-owned enterprises.
The bidding will be done through a government-to-government scheme, which is known to be faster but could be less transparent compared to open tender schemes done with the private sector.
Agriculture Secretary William Dar said the importation was necessary to secure a sufficient inventory of the staple, adding that based on their computation, the country’s rice stocks—imports and local production combined—would leave the country with a buffer equivalent to 94 days of consumption by year’s end.
Under PITC’s bidding invitation, a total of 300,000 MT of 25-percent broken well-milled long grain white rice would be bid out with a budget of P7.45 billion.
The staple must be delivered to the ports of Manila, Cebu, Tacloban, Zamboanga and Davao in two batches and must arrive not later than June 22 and July 22 this year.
The decision to increase the country’s imports has drawn mixed reactions from industry groups.
Bantay Bigas said the government must use the money to buy local production instead, while the Samahang Industriya ng Agrikultura supported the move so long as the arrival of the staple would not coincide with the country’s harvest season for rice.
For the Federation of Free Farmers, however, the PITC’s decision to import signaled the absence of a concrete agricultural plan for the country.
“We are confused. What is the plan? The agency has programs to boost rice production and yet they are also increasing imports,” he said.
The move also cast a shadow of doubt among farmers’ groups and cooperatives, most of which are worried that the entry of more imports would result in a supply glut that could again lead to a fall in farm-gate prices during the main harvest season in September to November. INQ