The Philippines said it will allow private firms to import an initial 200,000 tonnes of milled rice for delivery not later than the end of August, part of the volume the country is looking to source overseas this year.

The shipment will be used exclusively by private corporations and will not be part of the government's stockpile.

The world's biggest rice importer has said it was aiming to import a total of 1.8 million tonnes of the grain this year, down from a record 2.3 million tonnes in 2008.

The government earlier signed a deal to buy 1.5 million tonnes of milled rice from Vietnam and officials have said they will allow the private sector to bring in the remaining 300,000 tonnes import volume forecast this year.

State-run National Food Authority (NFA) said in a published import invitation the initial volume private firms are allowed to bring in would be 200,000 tonnes, for delivery not later than Aug. 31.

The NFA will be importing the grain on behalf of private firms in exchange for a service fee of P2 per kilogramme to the state agency.

Each importer must buy a minimum volume of 5,000 tonnes, said NFA.

The Philippines, which imports around 10 percent of its annual rice needs, began allowing private firms to import rice in 2002 to curb smuggling, though the volume has been usually small due to the huge capital outlay needed and volatile prices.

Last year, private firms imported only 71,000 tonnes of milled rice, mostly from Vietnam and Thailand, around a fifth of their total 350,000 tonnes allocation.

Agriculture Secretary Arthur Yap has said the government could import the remaining volume not taken up by private firms.

NFA officials said on Wednesday around 750,000 tonnes of rice from Vietnam had arrived, and additional shipments of the same volume would likely come in by June or July.

The Philippines' rice deal with Vietnam in January helped calm the global rice market and stabilise prices.

Thailand's benchmark 100 percent B grade white rice was around $540 per tonne last week, well below the record $1,080 hit in April 2008 as major producers imposed export curbs to dampen