Philippines set to import 1.2M MT rice in 2011

MANILA, Philippines - Agriculture Secretary Proceso Alcala said the country would still have to import around 1.2 million metric tons of rice next year following another lowering of the projected palay (paddy rice) output this year to 16.02 MMT due to weather disturbances.

Alcala said the bulk of the importations would be left to the private sector, with the government, through the National Food Authority (NFA), importing the balance or just enough rice to maintain a 30-day buffer stock.

But he said unlike the previous administration, the Department of Agriculture would not frontload any of its rice importations for next year. Instead, the NFA would likely import in batches and upon negotiating a fair price.

The DA is in the midst of preparing a rice self-sufficiency roadmap for presentation to President Aquino and his Cabinet this week.

According to Agriculture Undersecretary Joel Rudinas, among the key components of the roadmap, is an aggressive production program, a demand management program and marketing intervention schemes.

Rudinas said part of the rice self-sufficiency program, would involve an aggressive production program which the DA is already implementing in terms of irrigation, seed propagation and post-harvest measures.

On the demand side, Rudinas said the DA is looking at alternative staples such as corn grits, cassava and others which people rely on in the provinces.

For marketing intervention, Rudinas said that such measures would involve reorienting the NFA towards market-driven practices and pricing.This includes raising the NFA’s purchase of palay from its current level of four per cent to a higher percentage of 9.5 percent and allowing a more market-determined pricing for NFA rice.

As such, Rudinas said the NFA would stop selling rice at P18 per kilo and allow prices to rise up to P23 a kilo so that it gets to the market at around P25 per kilo.

The move, is intended to bring the NFA back to its regulatory function and away from its trading activities, he added.