GOVERNMENT yesterday tapped an emergency regional rice stock after it attracted less than two-thirds of the 550,000 tons it asked for at an import tender and at significantly higher prices.

The National Food Authority said the Philippines asked for supplies from the East Asia Emergency Rice Reserve, a stockpile sourced from Southeast Asian countries as well as China, Japan and South Korea.

"We have already communicated to the East Asian partners," Ludovico Jarina, NFA deputy administrator, said adding any rice they source from the reserve would be bought at either spot market prices or via bidding.

Another NFA official who declined to be identified said Thailand had committed to set aside 15,000 tons of rice for the Philippines under the emergency reserve program.

Manila had also sent requests to Indonesia, Malaysia, Japan and South Korea but had not received any response yet, the official said.

The Philippines, one of the world’s biggest rice importers, is having trouble sourcing enough of the national staple to meet this year’s import requirement of up to 1.8 million tons due to soaring prices and tight world supply.

At yesterday’s auction, prices ranged from $618.50-$745 a ton, including cost and freight, a big jump from the last rice tender in January, when the average price was $474.41 per ton.

The Philippines was looking to source 550,000 tons of rice at the Tuesday tender for delivery between March and May but only attracted 335,500 tons.

It failed in two previous auctions to secure the full rice volume sought. The NFA official said another tender for 163,000 tons of rice might be scheduled soon, but the volume would go to the private sector. If the private sector declined the volume, the government would take it up, the official said.

The private sector is allowed to ship in 300,000 tons of rice this year.

LOANS

Last month, President Arroyo went outside normal commercial channels to ask the Vietnamese Prime Minister Nguyen Tan Dung to guarantee a supply of up to 1.5 million tons of rice.

But Hanoi said it could ensure a shipment of only 1 million tons, including a volume of around 700,000 tons which Vietnamese traders have already agreed to supply after auctions in January and December.

There were 10 bidders on Tuesday, including four Vietnamese firms. At least 130,500 tons were offered from Thailand, 30,000 from Vietnam, 10,000 from Pakistan and the remaining 165,000 tons from a combination of the three countries and China.

Manila had asked for bids for 450,000 tons of 25 percent broken rice, 50,000 tons of 15 percent broken rice and another 50,000 tons of 5 percent broken rice.

Jarina said bids would be awarded within five days.

So far, Manila has ordered 876,700 tons, largely from Vietnamese suppliers.

The Philippines already plans to tap a $60-million export credit guarantee from the United States to fund its rice purchases and Jarina said Manila was looking at commodity loans from other countries.

Despite efforts to boost local production, rice harvests have failed to keep pace with a population expanding at an estimated annual pace of 1.8 million people a year.

POVERTY INCIDENCE

Arroyo, at yesterday’s Cabinet meeting, ordered government agencies to speed up food production and infrastructure spending to lower the poverty incidence which has risen by 16 percent during a three-year period.

Arroyo and the Cabinet conducted an analysis of the figures of the National Statistical Coordination Board, which showed the number of poor Filipinos increasing from 23.8 million in 2003 to 27.6 million in 2006.

Anthony Golez Jr., deputy presidential spokesman, said the NEDA figures showed only a "slight increase" which he said was lower than in previous administrations.

"The President expects that the figures of poverty incidence would go to a steady downward trend especially after the 2008 budget has been signed, which will focus to invest more on our economy, education and environment," Golez said.

The budget was signed yesterday.

He said Arroyo ordered the fast-tracking of programs on milk, corn and wheat production, increased spending on rural infrastructure irrigation, post-harvest facilities, cold storage facilities, decreased cost of transporting goods, increased access to education, health and other services.

Press Secretary Ignacio Bunye said the President also ordered additional assistance for the Autonomous Region in Muslim Mindanao and three other regions where the poverty rate was highest.

ARMM had the highest poverty incidence rate of 55.3 percent.

The NSCB has reported that the 10 poorest provinces in 2006 were Tawi-Tawi, Zamboanga del Norte, Maguindanao, Apayao, Surigao del Norte, Lanao del Sur, Northern Samar, Abra and Misamis Occidental. – Regina Bengco and Reuters