Philippines getting 10,000 MT of rice from Vietnam

The Governemnt is proceeding with the importation of about 10,000 metric tons (MT) of rice from Vietnam under a regional emergency mitigation program, National Food Authority Administrator Jessup Navarro told reporters.

"That is part of the East Asia Emergency Rice Reserve (EAERR)," Navarro said.

It is the volume committed by Vietnam to the Philippines for its buffer stock for the lean season from July to September and in times of calamity.

This type of arrangement falls under the Tier 1 Project of the EAERR, Navarro said.

Adopted by member-states of the Association of Southeast Asian Nations in October 2002, the EAERR aims to stabilize the price of the rice in the region especially during calamities and sudden tightness in supply due to floods or droughts.

Navarro, however, could not say when the 10,000 MT of rice would be shipped, saying the arrangement was still subject to negotiations.

He said the government was moving ahead with bilateral talks after the Department of Justice said the Philippines could execute an intergovernment deal with Vietnam.

The DOJ said that while the Procurement Act requires public bidding for infrastructure projects, goods and consulting services, the law also acknowledges international treaties and executive agreements (those entered into by heads of state).

The agreement is also deemed temporary in nature since it is only meant to be in effect from 2008 to 2010 and, as such, can be effected without the concurrence of the Senate.

The DOJ issued the legal opinion after receiving a query from Agriculture Secretary Arthur Yap.

The Philippines, which imports about 10 percent of its annual consumption and is considered the biggest rice importer in the world in terms of volume, has procured 1.775 million MT of rice from overseas for 2009.

The total includes 200,000 MT availed of by the private sector and the rest was procured by NFA.

The Philippines is done importing rice this year, Yap and Navarro said separately.

Navarro said the government was still assessing how much rice the country would need next year. He said that harvests in the main cropping would be considered in the assessment.