Rice supply tops agenda of Thai prime minister’s talks in RP (11:40 a.m.)
MANILA — The Philippines sought Thailand’s agreement Thursday to supply more rice as Manila shores up its inventories amid high global prices and tight supplies, officials said.
The world’s biggest rice importer, the Philippines says it has contracted for 1.7 million tons of the staple to fill a 10 percent domestic production gap this year, and wants to buy an additional 675,000 tons as buffer stocks for the last quarter of the year.
The government has secured contracts with Vietnam for up to 1.5 million tons and Japan for 200,000 tons, and is in talks with Thailand - the top exporter - over additional supplies.
Thai Prime Minister Samak Sundaravej was scheduled to meet with President Gloria Macapagal Arroyo later Thursday. Agriculture Secretary Arthur Yap said earlier the rice agreement with Thailand was unlikely to be signed this week because more work needs to be done.
Arroyo spokesman Ignacio Bunye said the two leaders will discuss cooperation on food security, improving the supply and distribution of rice and boosting productivity through research and development.
On Friday, Samak was scheduled to visit the International Rice Research Institute south of Manila, which has been developing rice varieties to increase production and withstand drought or floods to
help farmers across the world.
Arroyo on Wednesday urged the 10-member Association of Southeast Asian Nations to work with the rice institute to help improve production.
Rice prices have tripled this year, driven by growing demand, rising fuel prices, cuts in agriculture funding, increasing use of food crops for biofuels, financial speculation and bad weather.
Yap said Asian exporters Thailand and Vietnam have expressed concern that the Philippines’ aggressive buying was driving up prices.
He said his government preferred to negotiate directly with other governments rather than buying rice at public auctions. (AP)
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