NFA grants original proponent status to ANI’s rice import bid

20.08.2018

Listed Agrinurture Inc. (ANI) said its unsolicited joint venture (JV) proposal for the financing and purchase of imported rice to augment the country’s buffer stock was granted original proponent status by the National Food Authority (NFA).

In a disclosure to the Philippine Stock Exchange, ANI said it received a letter from NFA acknowledging receipt of its proposal and that the company has been considered and recognized as original proponent.

Under the proposed JV agreement, ANI shall finance the supply of NFA rice with no cash out on the part of government. Both parties shall jointly determine the origin, suppliers, delivery and arrival periods, packing, and loading and discharging ports.

The NFA will solely determine the type of commodity to be imported, specifications and quantity.

As accepted by the NFA, the ANI consortium will import as much as 500,000 metric tons (MT) of rice, equivalent to a two-week national inventory of subsidized NFA rice per quarter. ANI assured that the NFA will not spend for the purchase of imported rice.

Under its mandate, NFA is required to ensure national food security and to stabilize supply and prices of staple cereals like rice both in the farm and consumer levels.

At any given time, the agency is required to maintain a rice buffer stock good for 15 days, and good for 30 days during lean months. Since the Philippine daily rice requirement is estimated at 32,750 MT, the plan of ANI to bring in 500,000 MT is just enough to fill the NFA’s 15-day requirement.

During the lean months, the NFA needs to import more in keeping with the mandate of President Duterte to maintain a 60-day buffer stock.

ANI said its JV proposal will not replace local supply and that it only aims to augment the country’s rice inventory.

It also assured that NFA has no risk or exposure to losses and that all risks shall be borne by the ANI consortium from the time of purchase up to the point of dealing with undisposed stocks.

After being granted original proponent status, ANI said the project proposal will now proceed in accordance with both the technical and legal processes under the National Economic and Development Authority’s “Guidelines and Procedures for Entering into Joint Venture Agreements between Government and Private Entities.”


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