PHL to cut rice imports in 2011

MANILA, Philippines — The Philippines, the world's top rice importer, plans to cut imports by about two-thirds compared to 2010 because of ample grain supplies in its warehouses, the government said Wednesday. National Food Authority administrator Angelito Banayo, who had already ordered rice imports halted in July 2010, said the country was awash in rice because the prior administration of former President Gloria Macapagal Arroyo "overimported." "We inherited a lot of rice," Banayo told The Associated Press. He said he did not have firm figures but that the country would import just one-third of the amount that was bought from overseas last year. The government purchased 2.48 tons (2.25 million metric tons) and private rice traders bought another 242,500 tons (220,000 metric tons) in 2010, he said — more than the 2.34 million metric tons imported in 2008, when Philippine imports pushed world rice prices to historic highs, according to government statistics. The administration of President Benigno Aquino III, who succeeded Arroyo, contends that her government — apparently fearful of shortages — went on a shopping spree when faced with rising global food prices in 2008 and 2009. Aquino has sharply criticized the purchases, which he said were sometimes three to seven times more than needed. Banayo said the rice purchases may be made as early as next month and the government will offer to buy from Thailand, Vietnam and Cambodia. The country has an agreement with Vietnam that assures Hanoi will prioritize supplying rice to the Philippine, but the agreement does not set a purchase price, he said. He said the government was encouraging the private sector to play a greater role in bringing rice to the Philippines and that the government only played such a large role in order to ensure food security. Last year, the private sector accounted for only about 10 percent of the country's imports. "If they can import half, we'll be happy with that," he said. He said the government has asked Vietnam and Thailand to help the Philippines monitor the illegal smuggling of rice into the Philippines, which undermines customs collections and also lowers local rice prices for farmers. — AP