NFA prepares negotiations for rice imports

MANILA, Philippines - The Philippines may start negotiations for the importation of the remaining half of the standby authority for rice as the country prepares for the possible onset of La Niña, the National Food Authority (NFA) said yesterday.

NFA officer-in-charge Tomas Escarez said the agency may start negotiations by November to fill up grains requirement at the start of 2017.

“Most likely we will be allowed to import before December because it takes how many days to take the procurement process. We plan to have the government-to-government earlier but it’s really up to the council but most probably the importation would happen around November,” Escarez said.

The NFA has submitted the proposal to the interagency NFA Council for approval, noting the 250,000 metric tons to be imported will include buffer stock ahead as the La Niña weather looms phenomenon.

State weather forecaster Pagasa has continued its “La Niña Watch” even if the possibility of developing the weather phenomenon this year has slightly eased.

“We already imported 250,000 MT but we think more is needed because between January to February is also considered lean months since there are no harvest,” Escarez said.

“We recommended to the council based on the standby authority of 500,000 MT, we already imported 250,000 MT and we are allowed to import another 250,000 MT. We are just awaiting the instruction of the NFA Council,” he added.

To recall, Vietnam and Thailand last month won the 250,000 MT of the programmed government-to-government importation for buffer stocking this year.

Half of the total importation volume should be delivered to the Philippines not later than end-September while the other half should be delivered not later than end-October.

Meanwhile, Escarez assured there is enough stocks good for 18 days grains and are stored at government-owned warehouses.

The state rice importer is mandated by law to have at least a 15-day buffer stock at any given time, and 30-day buffer stock during lean months.