PHL ’22 rice imports breach USDA projection

THE Philippines imported a record high of 3.826 million metric tons (MMT) of rice last year, latest Bureau of Plant Industry (BPI) data showed.

BPI data showed the Philippines overshot the projected 3.8 MMT import volume cited by the United States Department of Agricultureforeign Agricultural Service in Manila (USDA-FAS Manila).

International market watchers and local experts have pointed out that the country imported a lot of rice this year to compensate for the reduction in domestic palay output due to reduced fertilizer application.

The high-ranking officials of the agriculture department have described the higher than usual import volume this year as a “blessing in disguise” to ensure the country’s staple supply and avert increase in prices of the commodity.

The country’s total rice imports last year was 38.07 percent higher than the 2.771 MMT it imported in 2021, based on BPI data.

BPI data showed a total of 152 eligible rice importers brought in the volume after using 4,302 sanitary and phytosanitary import clearances (SPSICS).

Vietnam remained as the country’s top supplier and accounted for 83 percent of total rice imports or about 3.178 MMT. It was followed by Myanmar at 244,738 MT and Pakistan at 198,912 MT.

Thailand exported 183,230 MT of rice to the Philippines last year while India shipped 10,094 MT, based on BPI data.

Both Pakistan and India benefited from the lowering to 35 percent of the most favored nation tariff rates on rice imports.

Last year, the Philippines also imported rice from China, Japan, Singapore, South Korea and Spain.

The country’s top rice importer last year was NAN STU Agri Traders with a total volume of 203,180.35 MT followed by Lucky Buy and Sell at 175,303 MT, BPI data showed.

Earlier, ranking agriculture officials revealed that the national government will continue its practice of “managing” the entry of rice imports by slowing down the issuance of pertinent import documents during harvest seasons as authorities “balance” local production and foreign supplies. (Related story: https://businessmirror.com.ph/2022/12/20/slowdownin-issuance-of-spsics-stays-astool-to-manage-rice-imports/)

They also hinted that they may issue fewer SPSICS to cover import arrivals in the first half should official figures indicate abundant supply.

Since the rice trade liberalization law took effect in 2019, authorities have been looking for ways to manage the arrival of rice imports to avert an oversupply that would depress farm-gate prices of local palay.

One of the ways the government limits the entry of rice imports especially during harvest seasons is by slowing down on the issuance of SPSICS.

The last time the BPI issued SPSICS for rice imports was June 6, with a corresponding volume of a little over 625,000 MT.

The BPI, an attached agency of the DA, is mandated under Republic Act 11203 or the RTL law to oversee rice importation through issuance of SPSIC. The SPSIC is a required import document that certifies an imported good or product is safe for human consumption and health, and does not bring in any threats to the local agriculture sector such as plants and animals.