URDANETA, Pangasinan, Philippines – The Philippines plans to keep rice imports at a minimum this year, just enough to meet the shortage in local production, even with a liberalized rice regime already in place.
During the celebration last week of the Rice Tariffication Law’s first year, Agriculture Secretary William Dar said the country targets to manage importation and just bring in 1.5 million to 1.6 million metric tons of rice this year.
Dar said Sen. Cynthia Villar, chair of the Senate committee on agriculture and food, said that with the country’s adequacy level of 85 to 87 percent, the shortfall is just about 1.6 million MT so that’s what the country could import.
“That is our direction. Managing importation and enhancing local productivity equals better for rice farmers, they are more productive and more competitive and at the end of the day, better income,” Dar said.
Villar said importation has been declining and based on her projections, imports will only average 400,000 MT per quarter to reach the 1.6 million MT.
“Last year, we imported nearly three million MT, so it will be half and that would be good for our farmers,” Villar said.
“And now the DA is already controlling the issuance of SPSIC (sanitary and phytosanitary import clearance) and importers are also afraid partly because of the coronavirus,” she said.
Further, Dar refuted claims that the Philippines may have a hard time importing from neighbouring countries Thailand and Vietnam as the two countries are facing their own challenges.
“I think that is too extreme. After this summer harvest, we will open up again the importation so that on rainy days coming June and July, we will have enough supply of rice,” Dar said.
Right now, rice inventory of the country is good for 80 days or almost three months and after the summer harvest season by May, inventory is expected to be sufficient for five months.
The United States Department of Agriculture-Foreign Agricultural Service said earlier the Philippines will bring in less rice this year but it is expected to maintain its status of being the world’s biggest rice importer, beating China for the second year running in the global market.
The Philippines is expected to emerge as the top global importer of rice in 2020 as the new regime for Filipinos’ main staple continues. This year, the country is seen importing some 2.5 million metric tons of rice, 13.8 percent lower than last year’s 2.9 million.
The USDA already lowered this year’s projection from the earlier 2.7 million MT as the Philippines will tone down its rice importation amid excessive supply coupled with improvements in local production.
China, on the other hand, is seen buying some 2.3 million MT for 2020.
Last year, the Philippines ended up as the world’s biggest buyer of rice, reaching a record high 2.9 million MT as the country opened up the industry to liberalization.