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THE
government of Vietnam has agreed to sell 600,000 metric
tons (MT) of rice to the Philippines, which is estimated
to cost around $564 million, as Manila races to beef up
its stockpile during the onset of the lean months.
Hanoi decided to
sell the volume following its negotiations with Manila
officials for a government-to-government purchase of
rice.
“We can
confirm that we have successfully completed negotiations
to purchase 600,000 MT of rice from Vietnam.
This
purchase was made in keeping with our plans to go back
to the market to further augment our buffer stocks when
the price and other conditions are suitable for us,”
said Agriculture Secretary Arthur Yap.
With the
additional 600,000 MT contracted from Vietnam, the total
rice imported by the Philippines for this year will
reach more than 2.3 million metric tons (MMT).
The
total rice imports for this year is considered the
highest in almost 30 years, based on figures from the
National Food Authority.
The
second-biggest volume was recorded in 1998 at more than
2 MMT. That year, the Philippines was hit by a severe El
Niño, causing farmlands to dry up.
Yap said
in a text message to reporters that Vietnam rice will
cost $940 per MT, including cost and freight.
The
Philippines paid an average of about $1,136 per MT of
rice during its last successful tender in April.
The
volume will arrive in the Philippines in tranches in
July, August and September.
This
import deal was sealed during a meeting of the
Cabinet-level interagency committee on rice procurement,
which is chaired by Trade Secretary Peter Favila and has
Yap and Finance Secretary Margarito Teves as members.
Prior to
the deal with Vietnam, the Philippine government has
contracted more than 1.73 MMT of rice from its Asian
neighbors.
Last
year, the Philippines imported a total of 1.65 MMT. |
