Self-sufficient or not, PHL must import rice to meet international trade deals

Even if the Philippines is on track toward rice self-sufficiency this year by producing 20 million metric tons of the commodity, the country would still have to import its staple food to fulfill its international trade agreements, an official of the Department of Agriculture said Tuesday. "Ang pag-import ng rice ay hindi pwede hadlangan ng dahil self-sufficient na. Hindi dahilan na huwag na mag-import, dahil may mga WTO at ASEAN agreements na kailangang sundin," Agriculture Assistant Secretary Dante Delima, who is also the National Rice Program coordinator, told GMA News Online. Under a World Trade Organization agreement, the Philippines is required to import at least 350,000 MT of rice to meet its minimum access volume (MAV). Also Tuesday, the National Food Authority said the Southern Food Corporation of Vietnam has won the bilateral deal to supply the Philippines with 187,000 metric tons of rice. The volume is enough to cover a 6-day buffer stock that will be used during the lean season and in times of calamity. The NFA now holds a 19-day buffer stock against a 30-day requirement. The Vietnam rice is expected to arrive not later than mid-June—in time for the traditionally lean season from July to September. Member states of the Association of Southeast Asian Nations with existing rice supply agreements with the Philippines were invited to submit their sealed offers, but only Thailand and Vietnam joined the tender. 2013 rice output target The Thai Department of Foreign Trade offered $568 per MT with a minimum volume of 100,000 MT and a maximum of 187,000 MT. State-run Vietnam Southern Food Corporation offered $459.75 per MT for the maximum volume. The offer was lower than Thailand by $108.25 per MT, and even lower than the NFA 2012 rice import cost of $470.70 per MT. “We are optimistic that this will be our last importation for the year because we have a good harvest,” NFA administrator Orlan Agbin Calayag told reporters on Tuesday. “The National Rice Program is also on track with its rice production,” he added. The Philippines will be able to reach its 20 million-MT target by end-2013 if the first quarter output is sustained in the succeeding quarters, said Delima. "In 2011, rice production grew by 6 percent, and in 2012 it grew by 8 percent,” the Agriculture official said. "First quarter pa lang up by 5.5 percent na ang rice production natin. We can reach the 20 million MT goal if we can sustain this," said Delima. He added that the target will leave room for 600,000 MT of rice in case damage occurs due to natural calamities. Calayag said the NFA will continue to be aggressive in its palay procurement within the year, noting the agency has allotted P10.9 billion to buy 615,985 MT of palay or unmilled rice from farmers. To date, the NFA has bought more than 200,000 MT, Calayag added. — VS/BM, GMA News