Reuters
MANILA | Wed Mar 16, 2011 5:24am EDT
(Reuters) - The Philippines must secure long-term supply deals with more rice-exporting countries even as it seeks to become self sufficient in the staple food by 2013, the state grains agency head said on Wednesday.
The country, the world's biggest rice buyer in recent years, was in talks with Thailand and Cambodia for rice supply arrangements, similar to an existing deal with Vietnam, said Angelito Banayo, administrator of the National Food Authority (NFA).
"We have to have supply agreements with the major rice exporters so that in case weather disturbances impact on our attempts to be self sufficient, we can run to them for additional supply," he told the Reuters Global Food and Agriculture Summit.
"We have to strive for self sufficiency in rice and other crops, but self sufficiency in one year could be negated by a strong typhoon or any severe weather disturbances in the second year," he said.
At least 20 tropical cyclones enter the Southeast Asian country of more than 94 million people every year. Last year, it bought a record 2.45 million tonnes after a drop in local production due to strong typhoons in late 2009 and a severe drought in the early part of 2010.
Banayo said he has proposed a supply agreement with Thailand, which has been endorsed by the Agriculture department.
"Thailand is assuring they can give us 1 million tonnes. We're looking at a three-year arrangement," Banayo said. "If it works out, then we can seek an extension."
He said a similar agreement with Cambodia was possible.
"We are already in talks and the Cambodians are already studying the proposed memorandum of agreement, although they still cannot commit any volume because of their limited milling capacity," he said.
VIETNAM DEAL
Manila has an existing rice supply agreement with Vietnam covering up to 1.5 million tonnes of rice annually. The deal was extended to 2013.
"I want us to have sources of rice other than Vietnam and Thailand so that I have a wider field to choose from. Perhaps we could also enter into supply agreements with India, Cambodia or even Myanmar," he said.
The Philippines has firmed up plans to import 860,000 tonnes of rice this year, part of a downsized purchase plan involving 1.3 million tonnes for this year's needs. Of this volume, 200,000 tonnes would sourced from Vietnam.
The Philippines aims to further cut its rice imports next year to just half of this year's purchases and to become self sufficient by end 2013.
The private sector has been allowed to buy up to 660,000 tonnes this year, with a government tender for the right to import the grain set on March 23.
Banayo said the country should learn from Indonesia's experience as it seeks to wean itself from rice exports.
"Indonesia was self sufficient a few years ago. Now it is buying heavily in the market," he said. "Self sufficiency is not a permanent thing because it is always subject to vagaries of weather disturbances."
(Reporting by Erik dela Cruz; Editing by Rosemarie Francisco)
MANILA | Wed Mar 16, 2011 5:24am EDT
(Reuters) - The Philippines must secure long-term supply deals with more rice-exporting countries even as it seeks to become self sufficient in the staple food by 2013, the state grains agency head said on Wednesday.
The country, the world's biggest rice buyer in recent years, was in talks with Thailand and Cambodia for rice supply arrangements, similar to an existing deal with Vietnam, said Angelito Banayo, administrator of the National Food Authority (NFA).
"We have to have supply agreements with the major rice exporters so that in case weather disturbances impact on our attempts to be self sufficient, we can run to them for additional supply," he told the Reuters Global Food and Agriculture Summit.
"We have to strive for self sufficiency in rice and other crops, but self sufficiency in one year could be negated by a strong typhoon or any severe weather disturbances in the second year," he said.
At least 20 tropical cyclones enter the Southeast Asian country of more than 94 million people every year. Last year, it bought a record 2.45 million tonnes after a drop in local production due to strong typhoons in late 2009 and a severe drought in the early part of 2010.
Banayo said he has proposed a supply agreement with Thailand, which has been endorsed by the Agriculture department.
"Thailand is assuring they can give us 1 million tonnes. We're looking at a three-year arrangement," Banayo said. "If it works out, then we can seek an extension."
He said a similar agreement with Cambodia was possible.
"We are already in talks and the Cambodians are already studying the proposed memorandum of agreement, although they still cannot commit any volume because of their limited milling capacity," he said.
VIETNAM DEAL
Manila has an existing rice supply agreement with Vietnam covering up to 1.5 million tonnes of rice annually. The deal was extended to 2013.
"I want us to have sources of rice other than Vietnam and Thailand so that I have a wider field to choose from. Perhaps we could also enter into supply agreements with India, Cambodia or even Myanmar," he said.
The Philippines has firmed up plans to import 860,000 tonnes of rice this year, part of a downsized purchase plan involving 1.3 million tonnes for this year's needs. Of this volume, 200,000 tonnes would sourced from Vietnam.
The Philippines aims to further cut its rice imports next year to just half of this year's purchases and to become self sufficient by end 2013.
The private sector has been allowed to buy up to 660,000 tonnes this year, with a government tender for the right to import the grain set on March 23.
Banayo said the country should learn from Indonesia's experience as it seeks to wean itself from rice exports.
"Indonesia was self sufficient a few years ago. Now it is buying heavily in the market," he said. "Self sufficiency is not a permanent thing because it is always subject to vagaries of weather disturbances."
(Reporting by Erik dela Cruz; Editing by Rosemarie Francisco)
