APTERR releases are made in cases of emergency through three APTERR Programs by using APTERR Stocks.

Diagram of APTERR Stocks Releasing Mechanism

APTERR Stocks

There are two types of rice reserves provided under APTERR as follows:

1) Earmarked emergency rice reserves

Earmarked emergency rice reserves are specific quantities of milled rice which remain owned and/or controlled by the government of the earmarking country for the purpose of meeting emergency requirements of one or more APTERR member countries.

Earmarked Rice Quantity of Each ASEAN Plus Three Country

2) Stockpiled emergency rice reserves

Stockpiled emergency rice reserves are rice voluntarily donated to APTERR in the form of cash (termed stockpiled cash) and/or physical rice stocks (termed stockpiled rice) which are owned collectively by the APTERR member countries and managed by the APTERR Secretariat under the supervision of the APTERR Council.

 

Programs for the Release of APTERR Stocks

There are three programs for the release of APTERR Stocks provided under APTERR as follows:

Tier 1

 Tier 1 - involves the release of earmarked stocks under a pre-arranged scheme to address problems of food availability. This program is designed for anticipated emergencies.

The pre-arranged release of rice reserves under Tier 1 is formalized as a forward contract, stating the specific quantity and grade of rice, pricing method, terms of payment and delivery, and other requirements between a supplying country and a recipient country. Delivery of rice from the supplying country will be made in the event of an emergency in the recipient country, with payment based on the prevailing international market price. The amount of rice under a forward contract is based on an estimate of rice shortfall in the event of an emergency over the medium term.

Tier 2

Tier 2 - involves the release of earmarked stocks for emergencies not addressed by Tier 1. This program is designed for unanticipated emergencies.

The release of rice reserves under Tier 2 is made available to an APTERR member country to meet an emergency requirement of rice under other arrangements. This program provides for the release of rice reserves beyond what is already arranged under Tier 1. Delivery follows an on-the-spot agreement between a supplying country and a recipient country. Pricing is similar to Tier 1: payment can be made in cash or through long-term loan or grant, based on mutual agreement of the countries involved.

Tier 3

Tier 3 - involves the release of stockpiled emergency rice reserves to address problems of food accessibility. This program is designed for acute emergencies and for other humanitarian responses to food insecurity.

The release of rice reserves under Tier 3 is a donation of rice as humanitarian assistance to a recipient country affected by calamity upon their request in response to acute emergency. In special cases, rice distribution can be fast-tracked under automatic trigger. Moreover, rice stocks may be also released for poverty alleviation and malnourishment eradication programs to address other humanitarian purposes.

 

 

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