Phl rice tender tentatively set for 3rd week of March

MANILA, Philippines - The Philippines may start the tender for 500,000 metric tons (MT) of rice imports in the third week of the month if the tax expenditure subsidy (TES) to be used for the shipments would be approved within the week, National Food Authority (NFA) Administrator Angelito Banayo said yesterday.

The TES, which would be used for the rice shipments, he said, has yet to be approved by the Fiscal Incentives Review Board (FIRB).

“If they (FIRB) approve it this week, we can publish (guidelines) next week for bidding a week after,” he said in a text message.

The TES is a subsidy from the government used for taxes or duties on imports made by government firms or agencies.

Banayo said that while all the 500,000 metric tons (MT) of rice to be imported this year would be brought in by the private sector, the shipments would need the TES to enter the country at zero tariff.

Half of the 500,000 MT of rice imports set for this year would be brought in by private traders, while the rest would be accounted for by farmers’ groups.

Agriculture Secretary Proceso Alcala said earlier that the bidding for the rice imports must start by March to ensure that the shipments would arrive in the country by end-June or before the lean months.

A source said a delay in the approval of the TES could put at peril the arrival of rice shipments intended to augment stocks before the lean months.

The Agriculture department, Banayo said though, has assured the NFA Council of bumper harvest of the crop.

Last year, the country imported 860,000 MT of rice, of which 600,000 MT was accounted for by private traders, 60,000 was bought in by cooperatives and the rest purchased by the government from Vietnam.

Agriculture Assistant Secretary Dante S. Delima said earlier the country’s duty-free rice imports may be reduced to just 100,000 MT next year if the 18.46 million MT rice output target is met this year.

The country produced 16.68 million MT of rice last year.