PH buys 187,000 MT of rice from Vietnam
MANILA, Philippines - The Philippines bought 187,000 metric tons (MT) of 25% broken white rice from Vietnam as it prepares for the lean season.
The National Food Authority (NFA) awarded the supply contract to Vietnam's Southern Food Corp. under a government-to-government tender.
Upon delivery, the purchase will augment the country's buffer stock by 6 days. The current stock can cover only 19 days of demand, below the 30-day requirement.
The rice will arrive mid-June, in time for the lean months of July to September.
Vietnam and Thailand were the only countries that participated in the Philippine tender. Thailand gave a price of $568 per MT, while Vietnam's Southern Food offered $459.75 per MT, lower than NFA's 2012 rice import cost of $470.70 per MT.
"We are optimistic that this will be our last importation for the year because we have a good harvest. The National Rice Program is also on track with its rice production," NFA Administrator Orlan Agbin Calayag told reporters.
The Philippines intends to produce over 20 million MT of unmilled rice in 2013, higher than 2012's production of 18 million MT.
The NFA earlier allotted P10.9 billion for the procurement of 615,985 MT of palay from farmers this year. The agency has procured more than 200,000 MT to date, said Calayag.
The NFA buys clean and dry palay at P17 per kilogram, with additional incentives such as graduated delivery fee up to a maximum P0.50/kg; drying incentive fee of P0.20/kg; and Cooperative Development Incentive Fund assistance of P0.30/kg. - Rappler.com