Manila, April 15 - The Philippines will intensify efforts to buy rice from local and global markets in a bid to boost government stocks amid surging prices of the grain, President Gloria Macapagal Arroyo said Tuesday.
"Supply is secure for the foreseeable future," she said, adding state grains trading firm National Food Authority has already contracted an import volume of 1.2 million metric tons, of which around 50% has arrived.
The NFA is set to hold another tender May 2 to buy more rice from abroad, possibly for shipment between June and August, she said.
Last week, Arroyo said the NFA will hold a tender in May to buy up to 500,000 tons of rice.
The NFA will hold another tender Thursday to buy up to 500,000 tons of rice.
Locally, the government will continue to buy paddy rice at higher prices until May in a bid to attract local farmers to sell their crop to the NFA, Arroyo said.
Late last month the NFA increased its buying price of paddy rice to PHP17 a kilogram from PHP12/kg.
The move was also intended to raise farmers' income amid surging rice prices in local and global markets, which have benefited mostly middlemen such as traders and millers.
Agriculture Secretary Arthur Yap last week said the government may further increase its buying price for paddy specifically for the main crop, which will be planted from June.
Local paddy rice prices are at their lowest levels during harvest months of the main crop in the last quarter of the year.
Arroyo said she has instructed provincial governors to buy paddy rice from farmers and store them in state facilities such as gymnasiums.
The country's paddy rice output this year is projected to reach a record high of 17.2 million tons, up 6% from a year earlier.
Arroyo also said she will personally lead a campaign against unscrupulous rice traders or millers who hoard stocks to take advantage of higher prices.
"I am leading the crackdown on any form of corruption by public or private persons who divert supplies of this essential commodity in any way," she said. "Anyone caught stealing rice from the people must be thrown in jail."
To strengthen the campaign, the executive department will soon submit to Congress a proposal to create a Consumers' Bill of Rights, she added.
The NFA has an import quota of 2.1 million tons of rice this year. Total imports, however, could reach up to 2.7 million tons following a commitment made by Vietnam recently to supply the Philippines with 1.5 million tons.