NFA, Council disagree on modes of rice importation

As it starts the preparation for the importation of 250,000 metric tons (MT) of rice, the state-run grains agency National Food Authority (NFA) is making a last ditch effort to explain why a Government-to-Government (G-to-G) importation is better than what NFA Council is proposing.

NFA said in a statement yesterday that it is already preparing for the importation of the 250,000 MT of government rice buffer stock as directed by President Rodrigo Duterte. The NFA Council, the interagency policy-making body of NFA, wants to have the importation done through an Open Tender scheme for a more transparent bidding process.

In the Open Tender scheme, any qualified supplier can participate in the bidding process, while G-to-G rice importation starts from the direct invitation to participating countries.

Participation in the G-to-G importation is only open to countries with existing Rice Trade Agreement with the Philippines and at present, only Vietnam and Thailand have this agreement with the country. To recall, it was in the middle of last year when NFA Council also approved the importation of 250,000 MT of rice but via Open Tender or Governmentto-Private (G2P) deal.

But Cabinet Secretary Leoncio Evasco, who chairs the NFA Council, said the government decided to switch to G2P importation from G-to-G in order to ensure a corrupt free and competitive bidding process at the NFA.

"While the G2G is exempt from the Government Procurement Reform Act, G2P is not,” Evasco said earlier.

But NFA said the non-exemption of G2P importation to Government Procurement Law will only actually delay the arrival of imported rice.

Arrival of stocks for G-to-G importation takes about 30 days, while an open tender importation takes about 45 to 50 days notwithstanding delays. If there is failure of bidding, for example, such as when suppliers fail to comply with the legal and documentary requirements or any of the bidders does not pass the postqualification evaluation, the process will take even longer, NFA pointed out.

“There are sectors saying that the G-to-G scheme is prone to corruption. This is unfair to those countries with Rice Trade Agreement with the Philippines because it is tantamount to accusing them with participation or connivance in an illegal act. G-to-G is transparent since it is an “open tender” involving governments. There is competition in G-to-G. There is no such thing as negotiated contract as claimed by some individuals,” NFA Administrator Jason Aquino said.

“The main reasons G-to-G is preferable are because the process is faster, and it also enhances our diplomatic relations with the supplier nations,” he added.

He only said the "only reason" NFA wants to fast-track the delivery of rice importation is to immediately replenish NFA's precariously low buffer stock and bring back the low-priced R27 and R32 per kilogram NFA rice in the market. (MBM)