THE Philippines, the world’s second largest rice importer, may account for half of the total rice imports in Southeast Asia this year as the country turns to imported stocks to keep retail prices stable.
United States Department of Agriculture (USDA) data analyzed by the BusinessMirror showed that the Philippines would lead Southeast Asia in terms of imports, accounting for 50.13 percent or 3.6 million metric tons (MMT) of the projected 7.182 MMT total imports of the region this year.
Southeast Asia’s total rice imports this year, however, is anticipated to fall by 410,000 MT from last year’s 7.592 MMT, according to the USDA.
Historical USDA data showed this would be the first time in four years that the Philippines’s share in total rice imports by Southeast Asia would be at least half.
The last time that the Philippines accounted for at least 50 percent of the rice purchased by Southeast Asia was in 2019, when Manila decided to deregulate its domestic rice industry. The Philippines cornered 55.26 percent of Southeast Asia’s rice imports in 2019.
This year, the Philippines will be followed by Malaysia and Vietnam in terms of rice imports at 1.2 MMT and 1 MMT, respectively, USDA data showed.
USDA emphasized that rice imports in the Asian region are rising, particularly in countries like the Philippines and Bangladesh, as a result of sustained wheat prices in the global market.
“Sustained high wheat prices are reversing trends of greater consumption of wheat for some countries in Asia and resulting in a shift back towards rice,” it said.
“The Philippines and Bangladesh exemplify this trend, with both governments spurring rice imports with reduced tariff levels,” it added.
The Philippines has lowered and kept its most favored nation (MFN) tariff on rice to 35 percent since mid-2021 as a measure to augment local supply and avert spikes in retail prices amid various global economic challenges.
The country’s projected rice imports this year of 3.6 MMT is 100,000 MT lower than the record-high 3.7 MMT it imported last year, according to the USDA.
Nonetheless, USDA explained that the Philippines’s rice imports would remain elevated to offset the “modest” decline in its local production.
The USDA projected that rice output by the country this year would be at 12.411 MMT, 129,000 MT lower than last year’s 12.54 MMT.
Furthermore, the USDA estimated that the Philippines’s total rice consumption would rise to record-high 15.75 MMT this year from last year’s 15.4 MMT.