Daily TribuneA farmers’ group, however, asserted that the main factor for the import increase would not be the expected lower yield, but rather the reduced rice tariff
(FILE PHOTO) Workers unload sacks of rice from a delivery truck at the Bagong Palengke, Taytay, Rizal on Wednesday, 25 September. President Marcos on Tuesday said that he is confident rice prices in the Philippines will drop similar to nearby countries.
PHOTOGRAPH BY JOHN LOUIE ABRINA FOR THE DAILY TRIBUNE
The Philippines is expected to import at least 4.9 million metric tons (MT) of rice next year, maintaining its position as the world’s biggest importer of the staple grain.
The latest report from the United States Department of Agriculture (USDA) indicates an increase in projected rice imports, up from 4.6 million MT to 4.9 million MT this month. The USDA cited a smaller domestic crop as the reason for the increase.
“Global rice production is forecast up based on a substantial increase for India, more than offsetting a reduction for the Philippines. Global exports are forecast at a near record following India’s removal of the ban on non-basmati white milled rice exports,” the USDA report stated.
Similarly, global imports are expected to rise, with increases in some African and Asian markets due to India’s trade policy changes, which are anticipated to create more available global supplies and lower prices.
“Consumption is forecast slightly higher, with growth in Africa and Asia offsetting reductions in India and the Philippines. Global ending stocks are forecast higher primarily on increases for India and Pakistan,” the report added.
A farmers’ group, however, asserted that the main factor for the import increase would not be the expected lower yield, but rather the reduced rice tariff.
“The driver is the reduced tariff; if the price of rice does not increase in the world market, the volume to be imported will still be large,” said Jayson Cainglet, director of Samahang Industriya ng Agrikultura, in an interview with Daily Tribune.
“Despite weather conditions, we don’t have problems with stocks. It’s too much even; that’s why the farmgate price has come down, even though it’s not peak harvest season yet,” he added.
In June, President Ferdinand Marcos Jr. issued Executive Order 62, modifying nomenclature and tariff rates on various products to ensure a continuous supply of goods and protect the purchasing power of Filipinos.
Under this order, which took effect in July, duty rates for imported rice are expected to decrease by P6 to P7.
Meanwhile, for this year, the USDA estimates the Philippines will import 4.7 million MT of rice — up from the previous forecast of 4.6 million MT — due to strong purchases of Vietnamese rice.
