NFA to import 1.8 M metric tons of rice

The National Food Authority (NFA) yesterday announced that it is importing a total of 1.85 million metric tons (MT) of rice this year as it gave assurances of a steady rice supply and prices at its outlets.

NFA Administrator Gregorio Tan said at a press conference in Malacañang that a public bidding was already held for the purchase of 400,000 MT of rice. Tan added that subsequent imports would be made in the succeeding months.

"Last year, the volume that we imported was 1.85 million MT and the expected (rice) production for the first semester of 2006 is supposed to grow by around 5.9 percent and the consumption is increasing by 2.4 percent," Tan said, adding that the country usually imports rice from Vietnam.

"So if you look at this percent increase, it appears that the production could potentially have a larger increase, so we’re expecting that we should not increase (imports this year) by more than 1.8 million MT," he said.

He said the total cost of the rice imports is P28 billion and the Department of Finance (DOF) has given President Arroyo its recommendation to give the NFA an additional credit line of P20 billion to pay for the importation.

He said since the rice imports will be staggered and the NFA would sell the staple as it comes in, the P20 billion will be more than enough to cover the importation cost. — Paolo Romero