Press Release
October 10, 2009

RICE IMPORTATION SHOULD GO THROUGH PUBLIC BIDDING

Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) today said any new rice importation that may be approved by the government due to palay crop losses caused by typhoons Ondoy and Pepeng should comply with bidding and other procurement requirements under the law to prevent any irregularity.

Pimentel was reacting to the administration's plan to import as much as 2 million metric tons of rice to be delivered next year to prevent a projected shortage in the supply of the staple cereal in the domestic market.

"Assuming that there is really a need to import rice, the correct procedures must be followed. We cannot tolerate a practice wherein they engage in importation without passing through the usual bidding process," he said.

The senator from Mindanao recalled that there was an allegation that the l.65 million tons of rice imported by the National Food Authority from Vietnam early this year was overpriced. The allegation stemmed from reports the NFA paid $540 per ton when the international price of rice stood at only $500.

The alleged overpricing was fueled by the decision of agriculture and NFA officials to skip competitive bidding and to resort to negotiated purchase of the commodity.

Pimentel stressed that any major business deal that the administration will enter into at this time should conform with legal requirements especially since President Arroyo's term is set to expire in mid-2010.

Juicy rice import contracts have been a chronic source of corruption in the DA-NFA, with the alleged kickbacks given by grains suppliers bloating purchase price.

Noting that the Philippines imports from l.5 million to over 2 million tons of rice every year, the minority leader said this illustrates graphically the dismal failure of the Arroyo administration's rice production program despite the introduction of high-yielding varieties much-vaunted increase in budgetary support.

The Philippines, which consumes about l3 million tons of rice a year, is the world's biggest importer.

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