MANILA - The Philippine government has bought 335,500 tons of rice for $237.5 million to offset an expected shortfall in domestic production, the National Food Authority said yesterday.

The rice will be imported mainly from Vietnam, Thailand and Pakistan, said the NFA which is the agency tasked with importing rice, the country's staple.

The price varied from $618 to $745 a metric tons, depending on the quality of the grain, the authority said.

President Gloria Arroyo meanwhile tried to allay public fears of any shortage saying that state granaries were well stocked.

"It may be a bit more expensive, but there will be no shortage. Supply will continue," Arroyo said in a speech opening an expressway north of Manila.

The Philippines is one of the world's biggest importers of rice.

Officials said the government was having difficulty sourcing supplies of up to 1.8 million tons of rice this year as prices sky rocket due to rising demand and tight inventories around the globe.

The government earlier said it expects to import two million tonnes of rice this year after importing 1.871 million tons of rice in 2007, mostly from Vietnam and Thailand.

NFA officials would not comment on whether there would be further purchases of imported rice, saying this would depend on local production.*AFP

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