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Country to import P1.3B worth of rice to avert shortage.

Asia Africa Intelligence Wire

| August 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Philippine Daily Inquirer)

Byline: Philip C. Tubeza

THE GOVERNMENT through the National Food Authority will import P1.3 billion worth of rice to avert a shortage of the staple similar to what the country experienced in 1995.

In an eight-page opinion, the Department of Justice has given the NFA the go-signal to import 91,500 metric tons of rice worth P1.3 billion through a "negotiated procurement'' or without public bidding.

"This department is of the opinion that the proposal to import rice through negotiated procurement is exempt from the requirement of public bidding under existing laws, rules and regulations,'' acting Justice Secretary Ma. Merceditas Gutierrez said.

The DOJ issued the opinion after then NFA Administrator Arthur Yap, who has since been appointed agriculture secretary, warned of a supply shortfall during the "lean months'' of July to September this year.

"If the rice import requirement for 2004 is not addressed immediately, it may result in a supply shortfall which may be likened to the 1995 rice crisis,'' Yap said.

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