India Business Forum

Search Button

The Indian Express

The Financial Express

Latest News

EIW

Market Indicators

Screen

Boulevard India

Celebrity Chat

Express Computers

Express Power

Letters

Advertisers Forum


Headstart: Express Careers

Business Forum

Lifemate: The Net Express Matrimonial Section

Zevraat

Express Properties

Palki - Travel & Tours

Information Technology

Astrosurf

Eco-India

Dr Know

Morning Digest

Express Greeting

Graffiti


FINANCIAL EXPRESS FRONT PAGE

Corporate

Economy

Expressions

Markets

Leisure

 

Saturday, November 14, 1998

Manila builds buffer rice stocks for La Nina 

Dolly Aglay  
Manila, Nov 13: The Philippines is in talks to buy rice from Thailand, China and Vietnam to build a buffer stock on prospects of a shortage due to the La Nina weather pattern, a senior government official said on Friday.

Manila has so far signed deals to buy a record 2.165 million tonnes of rice since the start of the year due to El Nino's dry spell.

"We are making room for possible additional imports that may be required for 1999 on top of 650,000 tonnes because of La Nina," the official who requested not to be identified told Reuters.

El Nino results from a warming of the ocean in the eastern Pacific, triggering climatic shifts that may produce drought or extreme precipitation in different parts of the world. La Nina, which is associated with torrential rains and flooding in Asia, cut across wide swathes of crop lands in the region in recent months and traders say this could affect rice supply next year.

President Joseph Estrada has authorised state trading firm National Food Authority (NFA) toimport a total 650,000 tonnes of rice since he assumed office in July.

Estrada's predecessor Fidel Ramos had approved the import of a total 1.89 million tonnes of rice from neighbouring countries since the start of the year because of the drought.

The official said he expected import deliveries in the country to reach up to 2.2 million tonnes this year. The remaining 310,000 tonnes would be delivered in the first half of 1999.

"We are advancing purchases (for next year) so that we avoid rushing into the market at the same time with other countries, like Indonesia," he said.

On Thursday, trade sources in Bangkok said there was an unconfirmed report that the Philippines had placed purchase orders for 100,000 to 200,000 tonnes of optional origin rice with European trading firms.

Asked to comment on the report, the official said: "We are looking everywhere so that we can get a good price."

"Our talks with suppliers like Thailand, China and Vietnam are in various forms, ranging from preliminary toadvanced."

Last week, the Department of Agriculture said it expected the country's unmilled rice harvest this year to drop by 20 percent to 8.99 million tonnes from 11.27 million last year due to the combined effects of El Nino and La Nina.

The Philippines has had below-normal rainfall since April 1997 because of the effects of El Nino. After the drought, the rain-laden La Nina threatens to swamp farmlands.

Meteorologists said the deadly sweep of two strong typhoons in the Philippines last month heralded the arrival of La Nina.

Typhoons Zeb and Babs, which came within days of each other, damaged 645,046 tonnes of unmilled rice in the main Philippine island of Luzon, the country's rice bowl, the Department of Agriculture said.

The department has forecast that the country's stocks of rice, including imports, would be about two million tonnes at the end of this year.

The stocks would be enough to cover the country's rice demand for 98 days, assuming a daily requirement of 21,100 tonnes per day, itsaid in a recent report.

"If we aim for a 120-day buffer stock, the country needs an additional 528,000 tonnes, which would be fully covered by (NFA's proposed import of 650,000 tonnes)," the department said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


Top


The Ambassador Group of Hotels

Global Tenders invited by MSTC

The National Stock Exchange of India (NSE)

 

Click here for a printer-friendly page Printer-friendly page

One of India's Leading Banks


The Indian Express  |  The Financial Express  |  Latest News
Screen  |  Express Investment Week  |  Market Indicators  |  Express Computers
Astrosurf  |  Eco-India  |  Travel & Tourism  |  Information Technology  |  Drumbeat: Ad Buzzaar
Advertisers Forum  |  Career India  |  Business Forum  |  Match Maker  |  Express Properties