RP planning $60-M rice imports
RP planning $60-M rice imports under export credit guarantee. Last week 44,000 MT of rice imported under PL-480 arrived at the Subic Bay Free Port.
WASHINGTON – Agriculture Secretary Arthur Yap sounded out here on Tuesday the Philippine government’s desire to import some $60-million worth of rice under an export credit guarantee of the US called GSM-102.
Yap raised the possibility of new rice importation in an hour-long bilateral meeting with United States Department of Agriculture Secretary Ed Schafer at the Washington Convention Center.
Yap and Schafer were with other ministers for the 3rd Washington International Renewable Energy Conference here.
In his talks with Schafer, Yap identified rice as a priority commodity that could be bought from the US for the first time under the GSM-102 arrangement. A $60-million rice importation is roughly equivalent to 100,000 metric tons of rice or a three-day supply.
GSM-102 offers competitive credit terms to buyers of US agriculture products, with a three-year repayment period.
“By reducing financial risk to lenders, credit guarantees encourage exports to buyers in countries – mainly developing countries – where credit is necessary to maintain or increase US sales, but where financing may not be available without such guarantees,” a USDA fact sheet on GSM-102 read.
But Yap said the Philippines may also tap GSM-102 for other agriculture importation since there is already an existing credit facility for US rice import called PL-480.
PL-480 is a soft loan program of the US government with a long-term repayment scheme of 30 years.
Two weeks ago, 44,000 MT of rice imported under PL-480 arrived at the Subic Bay Free Port.
No food crisis
Despite the likelihood of bigger rice importation, Yap stressed there is no looming rice crisis contrary to an earlier warning raised by Albay Gov. Joey Salceda.
Yap stressed there is more than enough supply of rice – the Filipino staple food – to meet the country’s 32,000 MT per day consumption requirement.
Like Yap, Salceda is regarded as one of the closest and most influential economic advisers of President Arroyo.
Yap told a press conference at the Philippine embassy here that the loose talk of a “food crisis” has sparked public clamor for the state-run National Food Authority to intervene and flood the market with rice at government-controlled prices.
The NFA is one of the government corporations under the control of the Agriculture Secretary.
“There is no reason for the NFA to intervene and release rice to (lower) the price because there is no supply gap but only a case of price gap,” Yap argued.
“There is no ‘food crisis’ to speak of when we don’t see any shortage of rice. There are even no queues or rationing,” he pointed out.
“So, why should we intervene more and supplant the private sector?” he asked.
“Higher price of well-milled rice sold by the private sector is also good for our rice farmers who get better and higher price for their produce and therefore increase the income of our farm folk,” Yap stressed.
Yap said he would not allow a situation that would reduce the rice stocks of the NFA intended for the calamity season in June-July or during off-planting season when the rice supply is not enough.
But Yap admitted the country is experiencing the impact of the prevailing “tightness” of rice supply in the international market, which is driving up the price of NFA rice.
Yap added that the NFA is quietly negotiating with the government of Vietnam for an additional rice import this year.
While here on official mission, Yap got a call from President Arroyo who instructed him to cut short his trip and immediately return to Manila to personally take charge and look into reports that NFA rice is being sold at P25 per kilo against the authorized P18.25 price.
Yap’s meeting with Schafer, a two-time governor of North Dakota, came a month after the confirmation of the latter’s appointment as USDA Secretary by the US Congress. Yap also met with USDA deputy secretary Chuck Conner in a separate luncheon meeting.
WASHINGTON – Agriculture Secretary Arthur Yap sounded out here on Tuesday the Philippine government’s desire to import some $60-million worth of rice under an export credit guarantee of the US called GSM-102.
Yap raised the possibility of new rice importation in an hour-long bilateral meeting with United States Department of Agriculture Secretary Ed Schafer at the Washington Convention Center.
Yap and Schafer were with other ministers for the 3rd Washington International Renewable Energy Conference here.
In his talks with Schafer, Yap identified rice as a priority commodity that could be bought from the US for the first time under the GSM-102 arrangement. A $60-million rice importation is roughly equivalent to 100,000 metric tons of rice or a three-day supply.
GSM-102 offers competitive credit terms to buyers of US agriculture products, with a three-year repayment period.
“By reducing financial risk to lenders, credit guarantees encourage exports to buyers in countries – mainly developing countries – where credit is necessary to maintain or increase US sales, but where financing may not be available without such guarantees,” a USDA fact sheet on GSM-102 read.
But Yap said the Philippines may also tap GSM-102 for other agriculture importation since there is already an existing credit facility for US rice import called PL-480.
PL-480 is a soft loan program of the US government with a long-term repayment scheme of 30 years.
Two weeks ago, 44,000 MT of rice imported under PL-480 arrived at the Subic Bay Free Port.
No food crisis
Despite the likelihood of bigger rice importation, Yap stressed there is no looming rice crisis contrary to an earlier warning raised by Albay Gov. Joey Salceda.
Yap stressed there is more than enough supply of rice – the Filipino staple food – to meet the country’s 32,000 MT per day consumption requirement.
Like Yap, Salceda is regarded as one of the closest and most influential economic advisers of President Arroyo.
Yap told a press conference at the Philippine embassy here that the loose talk of a “food crisis” has sparked public clamor for the state-run National Food Authority to intervene and flood the market with rice at government-controlled prices.
The NFA is one of the government corporations under the control of the Agriculture Secretary.
“There is no reason for the NFA to intervene and release rice to (lower) the price because there is no supply gap but only a case of price gap,” Yap argued.
“There is no ‘food crisis’ to speak of when we don’t see any shortage of rice. There are even no queues or rationing,” he pointed out.
“So, why should we intervene more and supplant the private sector?” he asked.
“Higher price of well-milled rice sold by the private sector is also good for our rice farmers who get better and higher price for their produce and therefore increase the income of our farm folk,” Yap stressed.
Yap said he would not allow a situation that would reduce the rice stocks of the NFA intended for the calamity season in June-July or during off-planting season when the rice supply is not enough.
But Yap admitted the country is experiencing the impact of the prevailing “tightness” of rice supply in the international market, which is driving up the price of NFA rice.
Yap added that the NFA is quietly negotiating with the government of Vietnam for an additional rice import this year.
While here on official mission, Yap got a call from President Arroyo who instructed him to cut short his trip and immediately return to Manila to personally take charge and look into reports that NFA rice is being sold at P25 per kilo against the authorized P18.25 price.
Yap’s meeting with Schafer, a two-time governor of North Dakota, came a month after the confirmation of the latter’s appointment as USDA Secretary by the US Congress. Yap also met with USDA deputy secretary Chuck Conner in a separate luncheon meeting.
posted by OlongapoCity Zambales at
7:47 PM
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