Philippines Readies Rice Imports after Typhoons

MANILA — The Philippines, last year the biggest rice importer in the world, announced plans Monday for import of 275,000 tons (250,000 metric tons) of rice as a buffer against possible shortfalls following devastating back-to-back typhoons.

The government last year bought a record 2.54 million tons (2.3 million metric tons) of rice to plug a 10 percent domestic production gap, jacking up prices on the international market as exporters Vietnam and Thailand worried about their own supplies.

Residents beg for money and food on a road in the flood-hit town of Binalonan, in Pangasinan, northern Philippines. (Photo: Reuters)

Faced with the typhoon destruction, flooding and mudslides that left more than 600 dead and rice paddies submerged since last month, the government advanced the bidding for rice imports from December to Oct. 30, said Rex Estoperez, a spokesman of the government's National Food Authority.

He said the delivery date was moved from March to starting in January.

The countries vying to supply the rice include Thailand, Vietnam, China, Pakistan, Australia, the United States and India, he said.

Agriculture Secretary Arthur Yap has said the Philippines has sufficient rice supply this year but that officials were still calculating the damage from the typhoons for production in the first and second quarters of 2010.

Yap's office said Monday damage to agriculture so far was estimated at $258 million, with nearly $207 million for rice alone, or 8.64 percent of projected rice production.

Estoperez said the 275,000-ton rice import was enough for seven days of supply. With the typhoon hitting other rice exporting countries like Vietnam, the shipment will serve as insurance for the country's food security, he said.

"We still have supply to last 65 days, so that means we have enough," Estoperez said, adding that rice production was unaffected in the central and southern Philippines.

Philippine rice inventory is normally enough for 15 to 30 days but officials have opted to take a more cautious stance by keeping a bigger volume to guard against shortages or price hikes.

The country currently has 2.59 million tons (2.35 million metric tons) of rice in its stocks, Estoperez said.