In a bid to tackle shortage Philippines’ National Food Authority to import 500,000 tonnes of rice.
In order to recover a major loss of rice stock owing to recent typhoons and to bring down soaring retail prices in the country, the Philippines government has allocated $236 million for the importation of rice through a tender rescheduled for August 27, 2014.
Keeping in mind the country’s rice importing practices, it is possible that Philippines could surpass the purchase of 2 million tonnes of rice just in this year, making it the third biggest buyer of rice in the world, as per the US Department of Agriculture (USDA).
Importing rice in case of emergency
Last month, President Benigno Aquino had announced that the National Food Authority (NFA) was given a go-ahead to import the additional 500,000 tonnes of rice for emergency.
The contenders for the tender include exporters, dealers and rice brokers, apart from Thialand and Vietnam, the former being the country’s traditional supplier of the grain. The bidders will be offered five lots of 100,000 tonnes each.
Philippines initially intended to achieve its goal to be totally self-sufficient in rice production, however, after missing its target date (end of 2013), it continues to keep the option open to import rice for years to come.
Photo Credits: Bloomberg