Rice import quota scrapped

President Duterte has removed the quota for rice imports, allowing private traders to buy more rice from other countries to ensure that the country has enough supply of the staple.

Meanwhile, the National Food Authority (NFA) failed to secure an additional 250,000 metric tons (MT) of rice after Thailand and Vietnam exceeded the government’s reference price.

Duterte said a rice shortage could be avoided if the country has enough supply of the staple.

“To the traders and the businesses, I have done away with the quota. All of you can import rice. No more paper work and if there is somebody from NFA (National Food Authority), BIR (Bureau of Internal Revenue), Customs who would be asking money from you slap him,” he said.

NFA is required to maintain a rice reserve good for at least 15 days during harvest season and at least 30 days during the lean months of July to September.

The buffer stock is maintained so that the country would have rice in the event of an emergency or a natural disaster.

The NFA Council earlier admitted that the state-run grains agency’s rice stock has depleted to less than a day or about 0.35 days, but insisted the country is not facing a rice shortage. The supply was equivalent to about 200,000 bags, the lowest in four decades.

Duterte has allowed the NFA to import 500,000 metric tons of rice to replenish its inventory.

He has also defended NFA administrator Jason Aquino, who has been accused of creating panic by issuing statements about a looming rice shortage.

“During the meeting with rice traders, I talked to Jason Aquino. Actually there was already an indication of a shortage. I placed Aquino there because I trust him,” the President said in a speech on Aug. 6.

“When you start to see something which is also true, it cannot be rumor mongering because what is at stake is the stomach of the people. I told him ‘ignore the (NFA) Council which is mandated by law, go ahead and make the importations,’” he added.

Meanwhile, the NFA is set to hold another rice bidding next week after Thailand and Vietnam offered bids that were way above the NFA reference price of $483.63 per metric ton (MT) for the 15 percent brokens and $474.18 per MT for the 25 percent brokens.

“The bidding we have scheduled is a failure for non-compliance of price. We will have a re-bidding next week because the government really wants those stocks the soonest time possible,” said Judy Carol Dansal, NFA deputy administrator and

chairperson of the committee on government-to-government procurement.

During the initial bidding, Thailand offered to sell 120,000 MT of rice at 25 percent brokens at $530 per MT.

Vietnam, on the other hand, offered to supply 50,000 MT of rice with 15 percent brokens at $540 per MT and 100,000 MT with 25 percent brokens at $532 per MT.

The NFA special bids and awards committee declared a failed bidding and asked both countries to resubmit offers.

However, the second round of bidding also failed as the ASEAN neighbors refused to lower bid offers to align with NFA’s reference price.

Thailand re-offered $520 per MT for 120,000 MT with 25 percent brokens while Vietnam offered $530 per MT for 50,000 MT with 15 percent brokens and $521 per MT for 100,000 MT with 25 percent brokens.

Because of the failed bidding, NFA is now considering to raise its reference price once the NFA Council convenes again.

“We will still discuss and consider the reference price as against the offers made by the two governments. We have already considered the factors like foreign exchange, commodity price and price of shipping among others, when we set our reference price,” Dansal said.

Some representatives from Thailand, who declined to be named, said NFA’s price was significantly lower than the prevailing world market price.