MANILA (Dow Jones)--Local farmers in the Philippines will be allowed to import 163,000 metric tons of rice this year to help boost local stocks amid sharp increases in global and domestic prices, the National Food Authority said Tuesday.

  The volume represents the quota that the Philippines has committed to import from Thailand, China, Australia and India in exchange for continuing to impose quantitative restrictions on rice.

  The Philippines in December 2006 formally obtained approval from the World Trade Organization for an extension until 2012 of its quantitative restrictions on rice, which expired in June 2005.

In exchange for the extension, the Philippines committed to bring in specified volumes of imports from Thailand, China, Australia and India totaling 163,000 tons.

  The volume will be made available to the private sector, mainly farmers, beginning in April for arrival no later than August this year, said NFA administrator Jessup Navarro.

  But another official said the issue of a possible tariff reduction on rice imports will have to be resolved first before the private sector is allowed to begin importing the volume.

  Upon instruction by the President, the government is considering reducing the import tariff on rice, which currently stands at 50%, to encourage  increased participation by the private sector in importing rice.

  Philippine rice imports this year could reach a record 2.7 million tons, as the government is bent on building up local stocks amid shrinking global supply. 
 
 
   -By Rhea Sandique-Carlos, Dow Jones Newswires; 632-848-5051; This e-mail address is being protected from spam bots, you need JavaScript enabled to view it  
 
  
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