Government postpones MAV rice import auctions

MANILA, Philippines — State-run National Food Authority (NFA) has postponed the open auction for the 805,200 metric tons (MT) of  rice imports under the minimum access volume (MAV).

In a published announcement, NFA said it has deferred the auction scheduled on Thursday at the Bureau of Treasury.

A source from the NFA, who refused to be named, said the deferment was a decision by the NFA Council.

The postponement, however, is a welcome development for the NFA as it needs more time to evaluate the applicants.

“More or less 280 applicants were accepted and more are being evaluated. We had very limited time to conduct prequalification and issue certificate of eligibility to bid,”  the source said.

“The council members think it is just so easy to accept, evaluate, issue certificates, and pay just to qualify,” the source added.

NFA has yet to announce a new schedule for the auction.

Late last month, NFA said private traders could import up to 293,100 MT each from Thailand and Vietnam, while the rest would come from other countries.

Philippine private rice importers can also buy up to 50,000 MT each from China, India and Pakistan, up to 15,000 MT from Australia, up to 4,000 MT from El Salvador, and 50,000 MT from any country.

There will be 48 lots. The NFA Council has set the minimum bid price at P250 per MT.

According to the NFA, traders should bring in well-milled rice with of 25 percent brokens or better.

All shipments will be levied with a 35 percent tariff to be paid in advance to  the Land Bank of the Philippines.

NFA said no applicant shall apply for an import volume of lower than 1,000 MT and higher than 50,000 MT for non-farmer organizations and lower than 500 MT and higher than 5,000 MT for farmer organizations.

The first phase of the arrival of rice imports will start in July to not later than Aug. 31, while the second phase will start on Dec. 20 to not later than Feb. 28, 2019.

Discharge ports are La Union, Subic, Manila, Batangas, Tabaco and Legaspi for Luzon; Cebu, Iloilo, Bacolod and Tacloban for Visayas; and Cagayan de Oro, Zamboanga, Davao and General Santos City for Mindanao.

The MAV refers to the volume of a specific agricultural product that is allowed to be imported with a lower tariff as a commitment of the Philippines under the provisions of the General Agreement on Tariffs and Trade (GATT) of the World Trade Organization (WTO).

The annual MAV importation is being shouldered by the private sector.