MoIT proposes Philippines boost rice purchases

At a recent conference, Minister Tran Tuan Anh of the MoIT told Secretary Fredelita C Guiza, the new Presidential Assistant for Food Security and Agricultural Modernization, that fresh demand from the Philippines is important to help underpin export prices in the region. 

The National Food Authority (NFA), said Minister Anh, has been given standby authority to import up to half a million metric tons of rice to boost the Philippines reserves and mitigate the impact of an El Nino-linked drought on food supply.

The new allowance can only be purchased from Vietnam, Thailand or Cambodia and is on top of the 750,000 metric tons bought by the NFA from Vietnam and Thailand and shipped within the past six months, said Minister Anh.

Rice trade in Vietnam has been slim in recent days as high prices have kept buyers at bay. Vietnam has also been hit by severe droughts, putting more pressure on its limited supply.

Minister Anh said the Philippines annual rice imports from Vietnam last year was roughly 1 million metric tons far in excess of year-to-date current year purchases and the time is ripe to boost imports and negotiate a long-tern rice deal.