2011 rice imports of below 1-M tons Okd

MANILA, Philippines - The Philippines, the world's biggest rice buyer in recent years, approved on Monday a plan to slash imports of the grain this year to less than 1 million tons, with the private sector doing most of the buying.

Hefty stockpiles and early rains expected to boost harvest this year have given the Philippines room to cut imports after the country bought a record 2.45 million tons in 2010.

Purchases of the national staple would be made mostly by private local traders possibly starting this quarter, with deliveries completed before the lean season starts in July, said National Food Authority (NFA) administrator Angelito Banayo.

"The NFA Council has approved this year's rice importation. Definitely, it's going to be less than a million tons," he told Reuters in a phone interview after a meeting by the inter-agency government panel.

Banayo said the NFA would soon launch a tender for import rights, but declined to specify the exact volume the private sector would be allowed to bring in. Private traders were allowed to import 200,000 tons last year.

The private sector's rice imports are tariff free, but the traders instead pay a service fee to the NFA.

"What we will do is a complete reversal of last year when NFA accounted for 90% of the purchases and the private sector was allowed to buy only about 10%," Banayo said.

Banayo also declined to disclose the exact volume of 2011 rice imports approved by the NFA Council so as not to affect market prices. Alcala said last week the Philippines may buy less than 1 million tons up to 1.3 million tons.

The private sector should start buying within the first quarter, with the traders left to decide where to source the grain, said Banayo.

"They (private traders) have to bring it in by June 30 in order to ensure that we have enough stock during the lean season," Banayo said.

Ahead of the council meeting, Banayo said in a radio interview Manila could buy rice from Vietnam and Thailand, and possibly even from Cambodia.

Allowing the private sector to purchase rice could help ease the financial burden of the NFA, whose outstanding debts are estimated at about P177 billion ($4 billion).

"We don't have funds and we are about to breach our debt ceiling," the NFA chief said.

The Philippines is targeting an increase in domestic unmilled rice output this year to a record 17.4 million tons as it aims to be self-sufficient in rice by 2013.

(Source: http://www.abs-cbnnews.com/business/02/14/11/2011-rice-imports-below-1-m-tons-okd)