PHL rice imports surge in January-may–bpi
THE Philippines’s rice imports in January to May expanded by 42 percent year-on-year to 1.5 million metric tons (MMT), the latest Bureau of Plant Industry (BPI) data showed.
Data from the attached agency of the Department of Agriculture showed that total rice imports during the five-month period were 445,279.445 MT higher than the 1.054 MMT recorded a year ago.
The imported rice came from Cambodia, China, India, Italy, Japan, South Korea, Myanmar, Pakistan, Singapore, Spain, Taiwan, Thailand and Vietnam, according to the BPI.
Vietnam remained as the country’s top rice supplier as it accounted for 1.2 MMT followed by Myanmar which supplied 123,459.28 MT. Rice imports during the period from Pakistan and Thailand reached 86,430.675 MT and 74,593.125 MT, respectively.
BPI data showed that Bestow Industries Inc. was the top rice importer as of June 2, with 80,115 MT followed by NAN STU Agri Traders with 77,884.35 MT.
Monetary Board member V. Bruce J. Tolentino said the lowering of tariffs on rice imports coming from outside Asean contributed to the increase in imports.
Pakistan, one of the countries allowed to supply rice at 35 percent tariff, already exported more than triple of its total shipments last year to the Philippines. In 2021, Pakistan exported a total of 25,286 MT of rice to the Philippines, based on BPI data.
“Some importers have already developed relationships with rice suppliers from Pakistan over [the past] three years. But note that there is a big peace and order issue in Myanmar and Pakistan with the military involved,” Tolentino told the Businessmirror.
“Philippines importers have the most knowledge and experience, plus contracts dealing with Vietnam and Thailand. They still need to develop such ‘suki’ relations with other countries especially India, Myanmar, Pakistan. It takes some time.”
President Duterte earlier extended lower tariffs on rice until the end of the year to cushion the impact of the Ukraine-russia conflict on domestic food prices and supply. (Related story: https://businessmirror.com.ph/2022/05/28/palace-eo-extends-lower-tariffs-onpork-and-rice-until-december/) The Businessmirror earlier reported the increase in this year’s rice imports could be attributed to the stockpiling by importers amid expectations of tight supply and lower domestic output due to the spike in production inputs. (Related story: https://businessmirror.com. ph/2022/04/25/dim-outlook-fuels-phl-rice-imports-surge/).
An industry group also told the Businessmirror earlier that the election season had contributed to the need for more rice imports given the increase in demand for low-cost rice (Related story: https://businessmirror.com.ph/2022/05/02/ elections-driving-demand-forlow-cost-rice/)
The United States Department of Agriculture (USDA) had projected that the Philippines could retain its status as the world’s second largest buyer of rice for the fourth consecutive year in 2023, when total import volume is projected to reach 3 MMT.
The USDA said the Philippines’s rice imports this year and next year would hit 3 MMT. (Related story: https://businessmirror.com.ph/2022/05/16/ phl-to-import-more-rice-asoutput-to-stay-flat/)