RP makes biggest ever rice tender
MANILA - The Philippines will tender for a record 600,000 tons of rice to guard against potential supply shortfalls from crop damage caused by recent storms, officials said Tuesday.
The December 1 tender, the country's biggest ever, would likewise be a "forward-buying" operation in anticipation that prices may jump next year, a senior agricultural official told AFP.
The official conceded that such a huge order would likely push up international rice prices but said this could not be avoided.
"There are rumors that India might be calling for a tender for a huge amount," said the official, who asked not to be named.
However, International Rice Research Institute economist Samarendu Mohanty said he did not expect to a spike.
"The Philippine tender was expected so I don't expect the market to react," he told AFP.
"The Indian drought situation could mean a significant loss in production this year (but) they have lots of stocks so they should be able to handle it in the short term."
Tropical storms Ketsana and Parma caused the worst flooding in four decades on the main Philippine island of Luzon and left many of the country's prime rice lands inundated shortly before the start of the harvest season.
While the full extent of the damage to ricelands has not yet been assessed, the agriculture department is confident it has enough rice stocks for this year.
The country with the winning bid likely will ship the rice between February and May next year, the official said.
The Philippines relies heavily on imports to feed its rapidly growing population of 92 million.
In 2008, the country bought some 2.3 million tons of rice despite record world prices, causing political problems for President Gloria Arroyo.
Agriculture Secretary Arturo Yap has said imports this year will likely reach about two million tons.
rice importation
I could not really fathom how in the world the Philippines became one of the world's largest current importer of rice. We used to be one of the biggest producers before. We have the best schools training good agriculturists. Students from Thailand, Cambodia and Malaysia come and study in our universities because we lead in rice growing technology in Asia. But I guess those were all the bygone era. The reality now is we can't produce enough rice needed by our own population and so we started importing. The problem must have been getting worst because the shortage was never solved and the volume that we have to import is getting bigger every year.
I am feeling really sad because I believe this should not be happening.Rice is the Filipino staple food. It means that we live and grow on rice. Without pork, poultry, or beef in our table, we could still survive but not without rice. Our failure to produce and provide enough rice for our people, is no different from the failure of the parents to provide meals to their family. The Filipinos has failed and I wonder if we realized how serious our fault was and if we have the resolve to correct ourselves. It is sad, embarrassing, unfathomable.