THE government remains keen on holding the auction for the 500,000 metric tons (MT) of imported rice during the last week of February even as it continues to await the nod of the finance department for its tax expenditure subsidy, the National Food Authority (NFA) said on Tuesday. 

NFA Administrator Angelito T. Banayo said, however, that he is confident that the approval for the TES will be given by the Finance department within the week. 

“Most likely, the tender for 500,000 MT of rice could be held during the last week of February. The latest [schedule for the tender] will be the first week of March but we will do our best to undertake it within the month,” said Banayo in a telephone interview.  

He said the government is rushing to schedule the tender as soon as possible so that the imported rice will arrive within mid-May to June, when the agency expects its inventory to be depleted. 

Banayo said that the import volume would still be at 500,000 MT but the government will have to assess the projected production for the dry-crop season to determine whether   there is a need to increase rice imports for 2012.

“The United States Department of Agriculture [USDA] earlier estimated that the country’s rice shortfall for 2012 is at 1.5 million metric tons [MMT]. I do not want to speculate on the import volume. We will make an assessment [by March] and see whether we will increase the volume,” he said.

The Philippine government has decided to allow the private sector to import the entire 500,000 MT for 2012. This is in line with Manila’s policy of removing the rice importation monopoly of the NFA. 

Private traders may import rice provided that they pay duties, taxes and other fees that may be required by commercial banks and the Bureau of Customs or pay the service fee charged by the NFA for allowing the use of its TES.

For this year’s importation, the food agency will only act as a “clearinghouse” for the volume that will be brought into the Philippines in contrast to its previous role of importing most of the country’s buffer stock requirements.

Last year the Philippines imported 860,000 MT of which 660,000 MT was allocated to the private sector and 200,000 MT to the NFA.

The country is targeting to remove rice imports by 2013 by propping up its production of unmilled rice so the country will be “self-sufficient” in the staple.