MANILA, Philippines—The Philippines is expected to import rice from Vietnam or Thailand to boost its buffer stocks for the lean months, the National Food Authority (NFA) said on Monday.
NFA administrator Angelito Banayo said the government planned to purchase 120,000 metric tons of rice from abroad to fill the shortfall in the 500,000 MT rice requirement for 2012.
The NFA will bid out this year 380,000 metric tons of rice, which will be divided equally between farmers’ cooperatives and commercial rice traders.
On Monday, the NFA bid out 190,000 MT to commercial rice traders. The balance will be tendered next week for farmers’ cooperatives who want to import rice, officials said.
“After the bidding, then the government will decide on the mode of procurement for the 120,000 MT,” Banayo said.
Late last year, Agriculture Secretary Proceso Alcala said the government would not participate directly in the rice importation program this year but would leave it to the private sector.
Banayo said the government decided to import rice to ensure there would be enough buffer stocks during the lean months from July to September.
He noted that the Philippines could buy rice under a government-to-government contract, the same mode of procurement it used when it imported about 220,000 MT of rice last year.
The Philippines, Banayo said, has agreements with Vietnam and Thailand to buy rice at preferential rates.
Alcala said Cambodia, another rice exporter, had also offered to sell its rice to the Philippines.
Officials said the government had to protect its buffer stocks to keep the price of rice stable.
The 500,000 MT requirement for 2012 is 42 percent less than the amount of rice imported in 2011, which was set at 860,000 MT.
Banayo said the total rice importation for 2012 would cover the Philippines’ buffer needs for 20-21 days by June 30. To fill the 30-day mandated buffer requirement, the NFA will buy rice from local farmers, he said.
The reduced rice import volume is part of the Aquino administration’s goal of making the country self-sufficient in the staple by 2013.