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Philippines May Not Import More Rice Despite Drought -Ag Secy

Even though drought is expected to reduce paddy rice output in the Philippines, the country may decide against additional rice imports this year due to ample supplies of the grain in the local market, Agriculture Secretary Arthur Yap said Wednesday. We're leaning towards not importing it because the NFA (National Food Authority) has sufficient supplies at this point," Yap told reporters. The NFA, a state-owned grains trading firm, is expected to have around 34 days worth of rice stocks based on a daily consumption base of 32,000 metric tons, Yap said. At present, rice stocks stored in government warehouses are equivalent to around 16 days of consumption. This doesn't include 18 days worth of rice shipments expected for arrival before the end of the month, he said. The NFA's rice inventory does not include rice stocks held by commercial traders and households, he said. However, the department won't hesitate in contracting rice imports if such a need arises, Yap said. "The state can always exercise the right to make importation even if the arrival period falls during the harvest season," Yap said. The government determines quotas for rice imports each year to protect local prices, and the quota for this year has almost been filled. The NFA may just decide to import the remaining balance of 70,000 tons from the approved rice import volume of 1.72 million tons for the year, he said. Rice imports are usually timed before the end of third quarter to prevent imports from exerting pressure on local prices during the last quarter, when the bulk of the country's main crop is harvested. Last week, Yap said paddy rice output could grow by only 3%-3.5%, instead of the original growth forecast of 5%, due to an ongoing drought. At worst, growth could be only 1.5%-2%. The Philippines has signed so far this year contracts to buy 1.61 million tons of rice, mostly from Vietnam.  (Dow Jones)

 

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