November 8, 2007

Philippines to import additional 200,000 tonnes of corn

The Philippine Department of Agriculture has approved the request of the corn industry to import an additional 200,000 tonnes due to supply shortage.

GMA-Corn Programme director Dennis Araullo said the Inter-Agency Committee on Rice and Corn had given the nod to import more corn, adding that "it is now up to the National Food Authority (NFA) to schedule a tender."

The industry earlier filed a petition to include the 200,000 tonnes in the tender for the 70,000 tonnes of corn.

Earlier, the NFA said it might re-tender for the failed 70,000 tonnes of yellow corn by the third week of November to accommodate the additional 200,000 tonnes of corn.

The NFA rejected the October tender for the 70,000 tonnes of corn after traders withdrew from the proceedings due to high world prices. The first batch of 70,000 tonnes is expected to arrive before the end of December while the second shipment of 200,000 tonnes of corn is expected to be delivered by February 2008.

Initial estimates show that the price of imported corn will reach P15.70 (US$0.36) per kilogramme. Price of domestic corn is now down to P11.50 (US$0.26) a kilo from P13.40 (US$0.31) a kilo two weeks ago, said Araullo.

End-users said the industry was in a tight situation and wanted an assurance of enough supply of yellow corn at least until Christmas.

The industry has claimed a shortfall in corn production of around 1.6 million to 1.8 million tonnes while the government maintained a shortage of only around 500,000 tonnes.

The reconfigured target of the DA reveals that corn harvest will reach 6.7 million tonnes this year based on revised estimates of the agriculture department. Corn production is expected to hit 4.018 million tonnes in the second half of the year.

US$1 = P43.410 (As of November 8, 2007)