By Adrian H. Halili, Reporter
THE Department of Agriculture said on Wednesday that it is looking to enter into rice supply deals with Pakistan and India for volume of about 2 million metric tons (MMT) combined.
In a statement, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the agency is planning to sign memoranda of understanding (MoUs) with the two countries, which are currently minor rice suppliers to the Philippines. The arrangements are designed “to create a level playing field among our rice supplying nations. We want them to compete for our market.”
Mr. Laurel said he met with Pakistan’s ambassador to Manila to finalize an MoU. Under the terms of the pending deal, Pakistan is expected to ship up to 1 MMT of rice annually.
Ambassador Imtiaz Ahmad Kazi has said that Pakistan is looking to expand its shipments of rice to the Philippines if Manila commits to taking up a guaranteed volume of imports.
Mr. Laurel said a “similar negotiation is under way with India.”
In October, the Indian government lifted its ban on non-basmati white rice exports, citing ample inventory levels. The ban had been imposed last year to guarantee sufficient domestic supply for India.
India is the world’s largest exporter of white rice. Vietnam is currently the Philippines’ primary foreign rice supplier.
In January, the Philippines and Vietnam signed a five-year agreement setting a shipment quota of between 1.5 MMT and 2 MMT.
The Philippines is projected to remain the top rice importer in the world, according to the US Department of Agriculture. It is expected to import about 5.4 MMT of rice next year.
Rice imports hit 4.48 MMT in the year to date as of Dec. 12, the Bureau of Plant Industry reported.