The US Department of Agriculture projects that the Philippines would import this year a record high of 5 million metric tons of rice – beating its 2022 record of 3.83 MMT.
This is because of the combined adverse impacts of the El Nino and the tropical cyclones that entered the country in the last quarter causing much destruction to local farms.
In the latest USDA projection, rice imports would hit 5 MMT from its previous 4.7 MMT forecast with Vietnam accounting for the 80 percent volume– with whom the country signed a long term (5 year supply agreement).
The USDA noted that “global imports are up with higher imports for the Philippines, owing to population growth and reduced import tariff.”
“Thus far in 2024, the Philippines relied on Vietnam for more than 80 percent of imports,” Business Mirror quoted the USDA report.
President Ferdinand "Bongbong" Marcos, Jr. last August slashed rice tariffs to 15 percent from 35 percent until 2028 as part of the government’s effort to cut rice prices.
Data from the Bureau of Plant Industry (BPI) showed that rice import arrivals as of October 30 reached 3.79 MMT.
Of the arrivals, over 2.97 MMT came from Vietnam, which maintained its status as the country’s top source of imports.
The USDA also upped its rice imports forecast for the Philippines in 2025 to 5.1 MMT on higher consumption of the staple.
Global imports from Bangladesh, Vietnam, and the Philippines also rose, the USDA said, adding that developments in the global grain market could affect prices across Asian suppliers, including India’s recent lifting of its export ban on non-basmati rice and scrapping the minimum export price (MEP).
Moving forward, prices across Asian suppliers have been under pressure by India’s market re-entry. Given renewed competition from India, Vietnam is forecast to export less in 2025, the USDA said.
It also projects a reduction in Indonesia’s rice imports from Vietnam as the government increased its domestic procurement, but noted that such would not be the case for the Philippines.
“The Philippines is expected to remain a primary destination for Vietnamese exports due to a combination of logistical advantages, competitive prices, and rising consumer demand for high-quality rice.”
Former Agriculture Undersecretary for Rice Development Leocadio Sebastian recently said the Philippines’s rice imports could exceed 4.2 MMT by yearend as bad weather widened the projected shortfall in domestic production.
He said a minimum of 400,000 metric tons (MT) could enter the country in the last two months of 2024.
“It could be more depending again on how our traders will also be reacting to the global market,” Sebastian said.
#WeTakeAStand #OpinYon #OpinYonNews #RiceImportation #USDA