Manila returns to rice market

Manila returns to rice market

MANILA (Reuters): The Philippines plans to buy an initial 100,000 tons of rice next month in a tender to be held by state- trading firm National Food Authority (NFA), its deputy administrator Gregorio Tan said on Tuesday.

Government officials said the results of the NFA tender on March 8 would be used by Manila as a yardstick for its plan to negotiate with the governments of Asian rice exporters to supply an additional 350,000 tons.

Tan told Reuters by phone the state trading firm planned to seek tenders for the supply of 15 percent or 25 percent broken rice for March/April arrival in the country.

He said the NFA will accept offers of rice from Vietnam, Thailand and China.

"The results of the bidding will be used as an indicator for the government-to-government negotiations for the supply of an additional 350,000 tons," another senior government official said.

President Gloria Macapagal Arroyo approved the import by the NFA of 450,000 tons of rice in the first half of the year to partly fill a projected shortfall this year and to keep food prices low.