Worrying about the coming lean season (June- August) the National Food Authority (NFA) of Philippine has decided to import 500,000 tons of well milled long grain white rice through G to G deals to boost the buffer stock for coming days, according to Reuter.
NFA is planning to purchase 250,000 tons of 25%broken rice and remaining 250,000 tons of 15% broken rice and is seeking the delivery of the half volume by 31st March and another half by 30th April 2015.
NFA has invited all the major rice producing nations like Thailand, Cambodia, and Vietnam to provide rice to the Philippine through agreement sent from this month. Each supplier has to provide atleast 50,000 for each variety.
NFA is also planning to purchase 189,845 tons of paddy from local farmers before June to ensure adequate supplies and to maintain the prices from being fall.NFA said that it will purchase paddy at around P17 per kilogram( $384 per ton )and would also provide incentives to raise the prices to around P17.7 per Kilogram (around $399 per ton)
It has announced that it will open 413 new buying stations in the country and has invited local farmers to sell their paddy at these stations and to utilize the opportunity to increase their incomes as farms gate prices have fallen down P14-P16 per Kilogram.
NFA usually procures 7-8% of total paddy output to ensure the stock availability and prices stability. Paddy production in 2014 was about 18.97 million tons and NFA imports the rice as and when the stocks fall below the buffer.
Philippine imported around 1.8 million tones of rice in 2014 of which the 1.5 million was imported in 2014 and remaining 300,000 tons was from 2013 residual stock to ensure the stocks and price control.
USDA estimates Philippine to import around 1.6 million tons and to produce around 12.2 million tons in 2015.