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Govt to import 1.3 MMT of rice
By J.Lo
"I think the President will have to discuss or consult private sector for help… I think we need help of private sector in situations like these," Agriculture Undersecretary Mercedita Sombilla said government is planning to import 1.3 million metric tons (MMT) of rice as President Ferdinand Marcos Jr. expressed concerns over combined impact of Typhoon Egay, El Niño phenomenon and Russia's withdrawal from Black Sea Grain initiative on country's supply of grain.
During Palace briefing, Sombilla yet to set dates of importation, but noted there are pending applications for sanitary and phytosanitary certificates.
FMJ, who also serves as agriculture secretary, said DA has enough buffer stock of rice despite damage left by Egay in Northern Luzon.
FMJ met with officials of DA at Malacañang , a few days after Egay devastated north.
Egay left approximately P1.94 billion worth of damage to agriculture.
Sombilla said the supply and demand of rice in the country remain reliable so far.
Marcos said goverment is looking at some "agricultural inputs" to ensure prices of rice in tmarket will not increase.
With rice supply projected to reach 5.47 MMT in third quarter of this year and demand at 3.79 MMT, ending stock in third quarter is projected at 1.69 MMT, which is enough for 45 days based on present consumption, DA said.
Aside from effects of super typhoon, FMJ said t government's preparations for buffer stock with regard to impact of El Niño was also discussed during meeting.
"In our discussion, we saw our rice imports are going down…in an emergency like this, we need to see if we still need to import," FMJ said, adding importation must be studied carefully.
Possibility of immediate procurement of available rice stocks at lowest accessible price to cover 15-day buffer stock is among recommendations presented by DA to FMJ.
Amid effects of three global issues, Sombilla said DA is ready to increase country's rice production.
"Largest rice production will still come, if not by end of September, it will be sometime in October…we will be beefing up our supply," she said.
She said decision of Russia to withdraw from Black Sea grain initiative would have "minimal effect" on Philippine market, similar to effect of decision of India to ban rice exports.
As these developed, House deputy speaker Ralph Recto warned that Philippines may experience severe rice shortage due to typhoons and decisions of some rice producing countries to prioritize local consumption.
Recto described as "quadruple whammy" impact of decision of India to ban rice exports, Vietnam's move to cut its exports by half and scuttling of Ukraine grain deal as well as typhoons.
"These developments are sound of empty pots clanging," Recto said, noting Philippines remains world's second and sixth largest rice and wheat importer…. "This will really be a strong jab on our stomachs and we should all prepare for this," he said. "you don't need Nobel to sagely predict it will have ripple effect on all grain prices considering big hole it will cause."
Recto warned public what could hit Philippines "directly and painfully" is Vietnam's decision to slash its rice exports to four million tons by 2030 from 7.1 million tons in 2022.
He said floods spawned by Typhoons Egay and Falcon would adversely affect supply chain as these battered three regions: Ilocos, Cagayan Valley, Central Luzon.
"It would impact rice and corn supply as affected regions account for 44 percent of national rice production and 79 percent of corn," he said.
Recto suggested rice and substitute crops should be produced in areas hardly hit by storms, like Mindanao.
Retail prices of vegetables in local markets have increased by as much as P30 per kilo as agriculture sector incurs over P1.69 billion in losses due to Egay.
Kristine Evangelista, spokesperson for DA, said they have seen vegetable prices go up by around P20 to P30 in retail markets, and P10 in government-run Kadiwa centers.
Evangelista said flow of vegetables to wholesale distributors and retailers was also affected by typhoon.
She said local government units have been urged to put up more Kadiwa centers to bring in more affordable commodities for their residents.
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