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Hong Kong: The Philippines is in talks with neighbouring countries to secure rice supplies, President Gloria Arroyo said on Monday, as the government tries to stop inflation from getting out of hand.
Fears are growing that shortages of the staple could lead to social unrest, and Arroyo said the authorities were discussing the possibility of more purchases on top of a recent import agreement with Vietnam.
"The Vietnam supplies should cover it, but ... we are talking with other countries as well," she said in an interview.
She declined to name the countries but said: "They are neighbouring countries in the region."
The Philippines, one of the world's biggest rice importers, has said it could buy up to 2.2 million tonnes this year in what would be its biggest overseas purchase of the grain in a decade.
Arroyo has taken a personal interest in rice supplies for fear a shortage between harvests in the third quarter could spell political trouble for her. Earlier this year she asked Vietnam to guarantee up to 1.5 million tonnes of annual supply.
Possible suppliers
Analysts have said that Thailand, China, Pakistan, Australia, the United States and India could all be possible suppliers.
The Philippines' estimated 90 million people consume 33,000 tonnes of rice per day.
Analysts say a spike in the price of the national staple could provoke public unrest, although there is no sign of that yet. Arroyo, under political pressure over allegations of government corruption, is trying to ensure the situation does not get out of hand, they said.
The central bank said yesterday that annual inflation was likely to hit 5.3-5.9 per cent in March and could keep climbing into the second half. It averaged just 2.8 per cent in 2007, the lowest level since 1986.
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