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PH buying 300,000 MT rice on gov’t-to-gov’t deal

By Madelaine B. Miraflor

The Philippine government has officially opened the ₱7.45-billion government-to-government (G2G) importation of as much as 300,000 metric tons (MT) of rice, half of which should be delivered about five weeks from now just in time for the lean months.

The Philippine International Trading Corp. (PITC) already issued a notice inviting prospective bidders for the supply and the delivery of 300,000 MT of well-milled long grain white rice at 25 percent brokens. Submission of bids will be on June 8.

Based on PITC’s invitation to bid, the first 150,000 MT of rice under this G2G importation should arrive the Philippines by June 22, while the remaining amount should be delivered here by July 22.

Bulk of the supply, or around 174,000 MT, will go to Manila, while the rest will be brought to Davao (45,000 MT), Cebu (42,000 MT), Zamboanga (24,000 MT), and Tacloban (15,000 MT).

Under a liberalized regime, the Philippine government could no longer import rice directly from other countries.

This G2G importation is an emergency measure allowed under the Rice Tariffication Law (RTL) to make sure that the country will have enough rice during a national crisis such as the COVID-19 pandemic.

This is the first G2G importation that the country has initiated since the latter part of 2018 when the National Food Authority (NFA) awarded the contracts to procure 203,000 MT of imported rice to Thailand and Vietnam, the only countries with existing rice trade agreement with the Philippines at that time.

It marked the end of the series of importation that the NFA conducted that year, which totaled to 1.25 million MT of rice.

By March, the Philippine government formally liberalized rice importation through the implementation of RTL, which also removed all the regulatory powers of NFA.

The country’s G2G importation is now being handled by PITC, an attached agency to the Department of Trade and Indusry (DTI), though the recommendation to import more rice came from the Department of Agriculture (DA).


Source: Manila Bulletin (https://business.mb.com.ph/2020/05/26/ph-buying-300000-mt-rice-on-govt-to-govt-deal/)

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