NFA keeps rice import ceiling at 500K MT, may adjust for weather factors later

The volume of tariff-free rice importation cap remains at 500,000 metric tons (MT), the National Food Authority said on Thursday noting that weather conditions may still affect the agency’s decision.   “(The NFA council) has decided to not increase the import volume for 2012. But of course, this will still depend on the weather,” Food Agency Administrator Lito Banayo told reporters on Thursday.   He noted that “there is an existing minimum access volume (MAV) for rice and this could be used to augment supply [of rice].”   Under the quantitative restriction on rice set by the World Trade Organization, the Philippines is mandated to allow at least 350,000 MT of imported rice at lower tariffs.   The restriction on rice imports was set to expire this year. However, the country is lobbying another extension as to prevent the possible influx of cheap rice imports, consequently, protecting the local farmers.   "The Secretary (Proceso Alcala) assured that the summer harvest will be enough and that the Philippines will have an inventory of around 90 days' (worth of rice stocks) by June 30," the food administrator said.   He assured that the imported rice will arrive in time of the lean months (July to September) despite an extended bidding schedule.   The food agency is planning to conduct two separate rice tenders. The first half, 250,000 MT, would be allotted for traders and the other half for the farmers.   Earlier, the agency said that it expects an increase in the local rice output this year to 18.42 million MT of unmilled rice.   "Significant increases in production and harvest area are expected in Cagayan Valley, Bicol, Caraga, and ARMM. These could be attributed to the availability of planting materials and the expected wet summer brought about by the La Niña weather phenomenon," the Bureau of Agricultural Statistics said in a report.   The Agriculture department previously reported that the country imported 860,000 MT of rice in 2011. The private sector imported 600,000 MT, while the government and the farmers brought 200,000 MT and 60,000 MT, respectively.   The farm department aims for rice “self-sufficiency” by next year downsizing its imports to 100,000 MT only. — Rouchelle Dingalasan/ELR, GMA News