ANI offers to import 500,000 MT of rice in behalf of gov't

Listed company Agrinurture, Inc. (ANI) has submitted an unsolicited proposal to the National Food Authority (NFA) for its plan to import 500,000 metric tons (MT) of rice in behalf of the Philippine government.

ANI has filed a disclosure with the local bourse on Thursday, informing the stock exchange about receiving a letter from NFA acknowledging receipt of its proposal and that it has been considered and recognized by the agency as original proponent for the move.

Though he has no direct knowledge of the deal, NFA Grains and Marketing Chief Rocky Valdez pointed out that all deals such as this will be subject to the approval of the NFA Council, the highest policy making body of the state run grains agency.

Under the proposed joint venture agreement, the ANI consortium shall finance the supply of NFA rice with no cash out on the part of government.

Both parties shall jointly determine the origin, suppliers, delivery and arrival periods, packing and loading and discharging ports.

NFA, on the other hand, will solely determine the type of commodity to be imported, specifications and quantity.

"As accepted by NFA, the ANI consortium will import as much as 500,000 MT of rice, equivalent to two weeks national inventory of subsidized NFA rice per quarter," ANI said in a statement.

As part of its mandate, the NFA is required to maintain a rice buffer stock good for 15 days, and good for 30 days during lean months.

Since the Philippine daily rice requirement is estimated at 32,750 MT, the proposed amount to be imported is good to last for 15 days.

After being granted original proponent status, the project proposal will now proceed in accordance with both the technical and legal processes under the National Economic and Development Authority (NEDA) “Guidelines and Procedures for Entering into Joint Venture Agreements between Government and Private Entities."