The Philippines and Thailand will soon sign an agreement that will see Bangkok giving priority to Manila in the sale of Thai rice, a spokesman for President Gloria Macapagal Arroyo said on Friday. Thailand, the world's largest rice exporter, is under pressure to unload its huge rice stocks which have swollen to the equivalent of 7 million tonnes of milled rice, the highest ever.
Thai Prime Minister Abhisit Vejjajiva is in Manila for a one-day visit to meet Arroyo on Friday. The two leaders talked about ways to boost economic co-operation, including rice trade, presidential spokesman Cerge Remonde told reporters. Abhisit told Arroyo that the Thai Cabinet has "just approved the signing of a MOA (memorandum of agreement) for the ... preferential selling of rice to the Philippines on a government to government basis," Remonde said.
The sales volume was not part of the discussion but the agreement, when signed, will likely take immediate effect, said Remonde who gave very few details about the deal. Thailand, along with Vietnam, is a traditional source of imported rice for the Philippines, the world's biggest importer of the grain. Bangkok said in July that it planned to release 500,000 tonnes of milled rice and 600,000 tonnes of paddy rice this month, but no details about the sales have been announced.
The Philippines bought more than 500,000 tonnes of rice from Thailand in 2008, when Manila's imports reached a record 2.3 million tonnes, helping boost grain prices to peak levels. The bulk, or around 1.6 million tonnes, were supplied by Vietnam. Manila's rice imports this year had reached 1.775 million tonnes, of which 1.5 million tonnes were bought via an inter-government deal with Vietnam.
RICE OUTPUT UP Unmilled rice output in the Philippines grew almost 2 percent in the second quarter from a year earlier, data showed on Thursday, putting the world's biggest importer of the grain on track to meet its full-year goal. Paddy rice production rose to 3.435 million tonnes in the second quarter, up from 3.372 million tonnes in the same period last year, the Bureau of Agricultural Statistics said in a report on its website www.bas.gov.ph.
"The increment was largely attributed to expanded area harvested due to sufficient water supply from irrigation and rains, increased use of hybrid and certified seeds and fertiliser application," the agency said. The latest data brings first-half output of the country's main crop to nearly 7.4 million tonnes. Manila is looking to raise production this year to over 17 million tonnes from 16.8 million tonnes in 2008, banking on higher harvests in the traditionally strong fourth quarter.
The agriculture department is expected to release official data on second-quarter output of the entire farm sector later this week or next week. Agriculture Secretary Arthur Yap said in June the country's farm sector output, which accounts for about a fifth of the gross domestic product, likely grew an annual 1.5-2.0 percent in the second quarter, compared to a 2.02 percent pace in January-March.
The Philippines, which imports around 10 percent of its annual rice needs, has bought 1.775 million tonnes of the grain overseas so far this year, compared with a record 2.3 million tonnes in 2008 which helped boost grain prices to record levels. Vietnam, which sold 1.5 million tonnes of rice to the Philippines in a government-to-government deal in January, is reportedly hoping to sell 700,000 tonnes more rice to Manila until the end of 2009.
Comments
Comments are closed.