Philippines to Cut Rice Imports on ‘Better’ Output, Alcala Says

The Philippines, the world’s biggest buyer of rice, plans to almost halve the volume of imports in 2011 on expectations it’ll be a “better year” for local production, according to Agriculture Secretary Proceso Alcala.

Purchases from overseas may be between less than 1 million metric tons to as much as 1.3 million tons this year, compared with about 2.5 million in 2010, Alcala told reporters today. The imports will be undertaken by the state-run National Food Authority and private traders, Alcala said in Manila.

The volume and timing of Philippine imports can influence global rice prices, including in 2008, when they rose to an all- time high amid speculation that there was a global food crisis. Alcala said yesterday that this year’s rice-import volumes may be less than half of those in 2010. Chicago rice futures have gained 10 percent over the past year.

A government-to-government rice purchase may be considered, Alcala said, without identifying potential suppliers. The Philippines renewed an agreement to buy rice from Vietnam up to 2013, Alcala said on Jan. 7.

The Southeast Asian nation plans to “finish” agreeing to the rice-import contracts in the first half, and will spread deliveries throughout the year, Alcala said.

Rough rice traded at $15.92 per 100 pounds on the Chicago Board of Trade at 3:25 p.m. inSingapore today. The price reached $16.30 on Feb 3., the highest level since November 2008, and peaked at $25.07 in April 2008.

(Source: http://www.bloomberg.com/news/2011-02-09/philippines-to-cut-rice-imports-on-better-output-alcala-says.html)