Phl to begin exporting rice next year - Alcala

Manila, Philippines -  Agriculture Secretary Proceso Alcala said yesterday the Philippines will begin exporting rice next year.

Alcala said hybrid rice producer SL Agrictech, which businessman Manny V. Pangilinan is considering to invest in, is planning to produce the rice seed varieties for long grain and aromatic rice for export.

 “We will start to export (rice) next year whatever happens because we need to develop the market,” he said during the release of the first semester farm output report. “We are in the process of determining the volume.“

In an earlier press conference, Pangilinan said his group is interested in making new investments in agriculture, particularly with SL Agritech. Pangilinan recently said that First Pacific Co. Ltd. is in talks with the hybrid rice seed producer about a partnership in large-scale commercial farming.

“We were approached by them,” said Pangilinan. “They will supply the hybrid seedlings then we will provide the land for large-scale commercial farming,” Pangilinan told reporters.

He said talks with SL Agritech are still in the initial stage.

“It is still in the initial stage although they have good products so they should be encouraged,” he said.

Pangilinan said the group is also interested in banana and sugar projects in Mindanao.

He noted that agriculture is a neglected sector in the Philippines while agriculture in Thailand, Malaysia, Indonesia, Vietnam and even Myanmar is vibrant.

SL Agritech ships parental lines of hybrid rice seeds to Indonesia, Bangladesh, and Myanmar. The parental lines are cultivated in these countries to produce the seeds that are sold to farmers.

The firm is considering to start exporting seeds to Nigeria and is planning to expand its operations in Indonesia, Bangladesh and Myanmar as well as in Vietnam where currently exports it seeds.

SL Agritech is a subsidiary of the Sterling Paper Group of Companies. It was formed in 1998, performing research work on hybrid rice.

The company has been planning to conduct an initial public offering but has decided to defer it for next year, believing that tension between Filipino and Chinese naval forces in the Panatag Shoal can disturb trade relations between China and the Philippines and upset the stock market.

Alcala earlier said he would resume talks with Pangilinan regarding possible investments in the agricultural sector.