Thailand commits to sell more rice to RP

MANILA, Philippines – Thailand committed last night to supply the rice needs of the Philippines as the government intensified efforts to boost its buffer stocks amid fears of a prolonged global food crisis.

Thai Prime Minister Samak Sundaravej gave the commitment to President Arroyo during their closed-door talks in Malacañang that began at 5:30 p.m. and lasted nearly two hours.

Thailand is the world’s biggest rice exporter and the Philippines is the biggest rice importer. Agriculture Secretary Arthur Yap said that when the leaders of biggest rice importer and exporter meet, “what happens is cooperation.”

“There is a commitment to the Philippines in terms of rice sales in case we need it,” Yap told reporters after emerging from the meeting.

He said Samak assured Mrs. Arroyo that Thailand is willing to supply rice “as much as we need.”

“Thai Prime Minister Samak said on the basis of your need, we are willing to assist you,” he said.

He however said the volume of rice commitment or the price involved was not discussed.

Samak, he said, assured Mrs. Arroyo that the Thai government was “open to anything” in supplying rice to the Philippines, including through government to government procurement or through the usual private rice exports through tenders.

He said the Thai Prime Minister pointed out that a new harvest would be coming in the next few months and that the Philippines can either buy a portion of that yield or tap new crops.

Yap said the government is still deciding whether to source Thai rice from private firms or from the government.

“There are flexibilities so we are going to evaluate our options,” he said.

He said Mrs. Arroyo did not ask for anything and it was Samak who opened the subject of rice. The President, Yap said, thanked Samak for his offer.

The Philippine application for a sovereign guarantee on private Thai rice commitments was not discussed.

He said the commitment was not as firm as that of Vietnam that immediately committed 1.5 million metric tons of rice when the Philippines sought its help.

“But every time we would tender, Thailand would participate,” he said. “But today, the difference is that he said that he comes with the hand of friendship and in the spirit of ASEAN brotherhood.”

The government said it has contracted for 1.7 million tons of rice to fill a 10 percent domestic production gap this year, and that it wants to buy an additional 675,000 tons as buffer stocks for the last quarter of the year.

Samak is scheduled to visit the International Rice Research Institute today.