The Philippines, one of the world’s top rice buyers, plans to import 330,000 metric tons of rice this year to boost its stockpiles, according to the office of President Ferdinand R. Marcos Jr.
The National Food Authority, the state’s grains procurement agency, has proposed that the rice imports be undertaken through a government-to-government deal, either through the Office of the President or its designated agency, Marcos’s communications office said in a statement late on Thursday.
Marcos, who’s also the agriculture chief, had met with agriculture officials to discuss supply of the country’s national staple and keep prices stable. “In terms of the general supply for the country, I think we are in good shape and although we still have to import, our importations have come down,” he said.
The Philippines is also one of the world’s biggest rice producers, but it usually buys from major suppliers Thailand and Vietnam to help fill production gaps caused by typhoons. Department of Agriculture officials have said rice imports this year will likely reach around 2.5 million metric tons, down from about 3.5 million metric tons last year.
The government typically issues rice import licenses and so far, 790,449 metric tons have arrived in the country, the statement said. The Philippines’ rough rice output is projected to hit 20.5 million metric tons this year compared to 19.8 million metric tons in 2022.
Marcos said he’s confident there won’t be a shortage in rice supply and that the government is looking at ways “to control prices so they won’t go up too much.”
Rice importation, again?
Reacting to the latest government rice import plan, the Samahang Industriya ng Agrikultura (SINAG) questioned the importation approach, saying the NFA can buy cheaper rice from local farmers than imports.
SINAG executive director Jayson Cainglet revealed that the landed cost of imported rice amounts to P36 per kilo, much costlier than the locally produced rice at P20 to P21 per kilo.
“Local millers have long offered to mill the palay of NFA at discounted prices,” Cainglet said in Filipino, even as he lamented the government’s first recourse is importation across commodities.
“Bakit tayo importation ang first recourse across commodities? From onion, to sugar, to pork and now, back to rice,” he asked.
He added the NFA has been allotted a P9-billion budget and may seek additional allotment for rice stocking or emergency purposes. “Tumaas na rin ang imported rice from $490 per metric ton to $520 or around P36 per kilo landed cost,” Cainglet pointed out.
Under the DA’s 2023 supply outlook, the country’s total supply is at 16.98 million metric tons (MMT), which is sufficient to cover this year’s demand estimated at 15.29 MMT. “This would leave the country with an ending balance of 1.69 MMT, which is equivalent to 45 days of buffer stock, instead of the 90-day ideal buffer stock to stabilize the price of rice,” according to a DA briefer.
