Strong domestic output could cut rice imports
THE government could reduce the volume of rice imports next year amid expectations of strong domestic production in late 2017.
The National Food Authority’s (NFA) Director of Grains Market and Operations Division of NFA Rocky L. Valdez said the NFA is considering 250,000 metric tons (MT) of rice imports within the first half of 2018, down from the earlier target of 580,060 MT.
“We still have to see the final production figures for the dry season harvests. But this early, the DA (Department of Agriculture) is already projecting second half production at 12.9 million tons rice equivalent,” he said.
Mr. Valdez also noted that there is no urgent need to import rice in the last quarter of the year.
He said private-sector-led rice shipments under the minimum access volume scheme and local procurement may suffice to meet domestic requirements.
“We have actually set targets of small, medium, and high... that is equivalent to 250,000 MT, 580,000 MT, and one million MT,” Mr. Valdez noted, referring to the import scenarios for the first half of 2018.
This year, the government ordered 250,000 MT from six bidders, mostly from Vietnam, to supplement rice inventories during the lean months, which run from July to September.
The shipments were expected to arrive in tranches during the lean months; 120,000 tons by August and the remaining 130,000 tons in September.
Also, last month, the government opened the private-sector-led channel to import 805,200 MT of rice.
As of Sept. 11, Mr. Valdez said the NFA has received about 30 applications covering 200,000 MT.
The deadline for the submission of letters of intent to import is on Sept. 27.
Rice imports under the 2016 minimum access volume scheme will take place until Feb. 28.