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RP makes biggest ever rice tender—exec


Agence France-Presse
First Posted 18:58:00 11/10/2009

Filed Under: rice problem, Soft Commodities

MANILA, Philippines?The Philippines will tender for a record 600,000 tons of rice to guard against potential supply shortfalls from crop damage caused by recent storms, officials said Tuesday.

The December 1 tender, the country's biggest ever, would likewise be a "forward-buying" operation in anticipation that prices may jump next year, a senior agricultural official told AFP.

The official, who asked not to be named, conceded that such a huge order would likely push up international rice prices but said this could not be avoided.

"There are rumors that India might be calling for a tender for a huge amount," said the official.

However, International Rice Research Institute economist Samarendu Mohanty said he did not expect to a spike.

"The Philippine tender was expected so I don't expect the market to react," Mohanty told AFP.

"The Indian drought situation could mean a significant loss in production this year [but] they have lots of stocks so they should be able to handle it in the short term," he said.

Tropical storms Ketsana and Parma caused the worst flooding in four decades on Luzon and left many of the country's prime rice lands inundated shortly before the start of the harvest season.

While the full extent of the damage to rice lands has not yet been assessed, the agriculture department is confident it has enough rice stocks for this year.

The country with the winning bid likely will ship the rice between February and May next year, the official said.

The Philippines relies heavily on imports to feed its rapidly growing population of 92 million.

In 2008, the country bought some 2.3 million tons of rice despite record world prices, causing political problems for President Gloria Arroyo.

Agriculture Secretary Arturo Yap has said imports this year will likely reach about two million tons.



Copyright 2012 Agence France-Presse. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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