Taiwan prepares to open its gates to world's rice

Taiwan, obliged by a WTO agreement, will open international tenders to import 94,000 tons of rice, an official said yesterday.

"The Council of Agriculture will import the rice through the Central Trust of China. We will invite tenders in late April or early May and close the deal in June," council official Chen Hsiu-chin told reporters.

All countries except China can bid for the contract because Taiwan still bans direct trade with China, she said.

Taiwan joined the WTO on Jan. 1 this year and promised to open its rice market and import 144,720 tons of rice in the first year after joining the WTO. After the first year, it would negotiate with WTO members about its required annual import volume.

Of the 144,720 tons, 35 percent -- or 50,720 tons -- is for the private sector to import. The rest -- 94,000 tons -- is for the government to import.

The private sector, food companies and rice milling companies, have imported 10,000 tons of rice from Japan, the US, Australia and Thailand.

The most expensive rice -- Japan's Koshi Ikari rice -- appeared in Taipei food markets yesterday, but is not selling well because it sells at twice the price of Taiwanese rice.

Taiwan has 350,000 rice farmers and 320,000 hectares of rice fields. It grows enough rice for its own consumption and exports 100,000 tons of rice each year.

The invasion of foreign rice has forced Taiwan to reduce its rice output. Taiwan has let 100,000 hectares of rice fields lay fallow and is helping rice farmers to grow other crops -- beans, peanuts and flowers.

Last month, Taiwanese rice farmers formed a self-help organization to ease the impact on them brought about by Taiwan joining the WTO.

Taiwan Rice Development Association, an alliance of 300 rice farmers' and rice millers' groups, will help the government decide rice import volume and help rice farmers switch to other crops.