Philippines rice imports fall due to local harvest optimism

MANILA, Philippines — The Department of Agriculture (DA) reports that rice importers are buying less rice from abroad. This change comes as they expect a better local harvest this year. Recent data shows that the country has imported 640,916 metric tons of rice as of March 13. This amount is nearly 46 percent lower than the 1.19 million metric tons imported during the same period last year. Agriculture Assistant Secretary Arnel de Mesa noted that this decline indicates a shift in the import market. He mentioned that large imports last year and hopes for improved local crops are contributing to this adjustment. Raul Montemayor, from the Federation of Free Farmers, believes that a new price cap for imported rice is concerning importers. The DA implemented a maximum suggested retail price (MSRP) on January 20 to help reduce rice prices. It is considering lowering the cap to 45 pesos per kilogram by the end of March. Montemayor pointed out that a recent food security emergency declaration might have further worried importers. This declaration gives the government power to stop any suspected smuggling or profiteering. He also mentioned that there could still be leftover rice from 2024 imports. Last year, the country’s rice imports reached a peak of 4.8 million metric tons, reflecting a 33.3 percent increase from 2022. Vietnam is the largest source of imported rice, providing over one-third of the total. Pakistan and Thailand follow, each with around 10 percent of the market share. Despite the drop in imports, Montemayor expects the total for this year to remain around 4 million metric tons. He stated that demand still exceeds local production, making imports necessary. Samarendu Mohanty from the International Potato Center said that the Philippines now has more stable rice import needs. He added that recent policy changes in the Philippines and India have led to a decrease in global rice prices by 18 percent, calming market speculation. He noted that the Philippines has struggled with rice price fluctuations, often leading to higher costs for urban consumers. The new measures aim to address these issues and create a more stable rice market in the region.