
Philippines May Buy Rice If La Nina Damages CropsThe Philippines, the world’s largest rice importer, may return to the market if the La Nina weather event damages the next harvest, Agriculture Secretary Proceso Alcala said. Rice rose in Chicago, reversing a 0.4 percent loss.
“We will import if that happens,” Alcala said in an interview in Manila today. “We will not be caught flat footed.” Consultations will be made with farmers, millers and traders before any decision to import is made, said Alcala, who took the position July 1.
Rice futures surged to last year’s high in December as the Philippines rushed to secure imports after floods damaged crops, and on speculation India may become a net importer of the grain. Possible flooding threatens to widen the rice production deficit, which forced the nation to boost imports of the milled grain to a record 2.47 million metric tons this year.
“We will immediately assess the extent of the damage when flooding occurs,” Alcala said. “Whenever these things happen, you don’t see all of the crops wiped out. If central Luzon is affected, there will still be some supply coming out of Mindanao.”
The Philippines may have as much as 60 percent more rainfall in the fourth quarter than average, possibly causing similar damage to crops as experienced in 2009, because of La Nina, said Prisco Nilo, administrator of the Philippine Atmospheric Geophysical and Astronomical Services Administration said in a July 5 interview.
Rice GainsSeptember-delivery contract gained as much as 0.2 percent to $10.020 per 100 pounds on the Chicago Board of Trade, reversing an earlier decline to $9.960. It last traded little changed at $10.010 at 5:34 p.m. in Singapore.
La Nina, characterized by colder-than-normal sea surface temperatures in the Pacific Ocean, can cause wetter-than-usual weather in Asia and below-average rainfall in parts of the U.S., Argentina and southern Brazil.
The Southeast Asian nation lost 1.38 million tons of rough rice after rains flooded crops and warehouses between late September and October last year. After the rains, El Nino parched crops in the Southeast Asian nation, causing a forecast 10.5 percent drop in the first rice harvest of the year, from 7.38 million tons a year earlier, the government said in May.
Still, the Philippines will work to reduce the nation’s reliance on imports in the coming years by encouraging farmers to use flood-tolerant and drought-resistant seeds, minimizing losses caused by adverse weather, Alcala said.
‘Preventative Measures’President Benigno Aquino has ordered “preventive measures” on storms after a meeting of the National Disaster Coordinating Council identified 44 areas “vulnerable” to floods and landslides, Social Welfare Secretary Dinky Soliman said July 6.
The Department of Agriculture will implement a system to track yields, output and areas planted, and identify the provinces most at risk of damage from storms and typhoons, Alcala said.
Heavier rains and flooding may hit rice and corn growing areas including the Cagayan Valley, Bicol, Eastern Visayas and Surigao, if La Nina affects the country in the fourth quarter, the weather bureau’s Nilo said.
Cagayan Valley, the nation’s second-largest rice growing region, and Bicol and Eastern Visayas accounted for 19 percent of the nation’s fourth-quarter production in 2009, according to data from the Bureau of Agricultural Statistics.
By Bloomberg 

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