The Philippines' state grains agency has been authorised to import an additional 500,000 tonnes of rice for emergency needs, President Benigno Aquino said, as the government struggles to bring down record-high prices of the national staple. "The NFA has a standby authority to import 500,000 metric tonnes in preparation for possible calamities," Aquino said in his annual State of the Nation address on Monday.
The announcement comes as the National Food Authority (NFA) prepares to hold an "open bidding" next month for the importation of 500,000 tonnes of rice to boost thin stockpiles after a typhoon damaged crops early this month. The Philippines' increasing rice imports, expected to be the highest in four years, may exceed 2 million tonnes this year and could further underpin export prices in key producers including Vietnam, its traditional supplier.
Next month's tender is open to rice exporters in other countries including Vietnam, Thailand and Cambodia. Last week, the Philippines' food security chief, Francis Pangilinan, said rice inventories held by the NFA, the private sector and households were good for 82 or 83 days of national consumption, below a requirement for a 90-day buffer stock. President Aquino said the government was determined to import sufficient amounts of rice to bring down retail prices of the grain which, according to the latest government report, hit new highs this month.
For the Philippines, importing more rice is necessary to stop rice hoarding and force traders to unload more stocks into the domestic market, Aquino said. The US Department of Agriculture (USDA) has forecast that the Philippines may need to import as much as 2 million tonnes of rice this year and 1.8 million tonnes in 2015.
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