The United States Department of Agriculture-Foreign Agricultural Service said the Philippines will remain the world’s top rice importer next year, beating China’s record.

The Philippine is likely to continue ramping up its palay or unmilled rice production next year despite the onslaught of El Niño and the uncertain climate in the industry under the new rice regime.

In its latest grain report, the Philippine Statistics Authority (PSA) forecast the staple grain to increase in the first quarter next year.

The PSA said the projected increase is 0.49 percent higher from the previous year’s level of 4.62 million metric tons (MT).

The statistics agency also said palay production this year stood at only 19.07 million metric tons, lower by 1.1 percent compared with the 2017 output.

“Similarly, harvested area and yield were lesser by 0.2 percent and 0.9 percent than their respective levels in the previous year,” the report read.

Also, the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) said the Philippines will remain the world’s top rice importer next year, beating China’s record.

While the country will moderate its rice imports even with improved local production next year, the US agency forecasts rice imports reaching 2.7 million metric tons or higher than China’s 2.4 million metric tons.

The Philippines as the world’s biggest rice importer this year purchased a record of 3.2 million MT as it opened up the rice sector to unrestricted imports.

China’s rice imports during the period fell nearly half.

In March this year, President Duterte ratified the Rice Tariffication Act which led to a considerable increase in imports and a decline in domestic prices.

While the law has a positive inflationary impact, the USDA said the adjustment to rice liberalization remains a challenge for the Philippines.