Rice imports hit 2.72 MMT in late Aug. as global prices rise
PHILIPPINE rice imports amounted to 2.72 million metric tons (MMT) as of late August, according to the Bureau of Plant Industry (BPI).
The BPI reported that rice shipments in August, as of Aug. 22, totaled 208,949 MT, behind the year-earlier pace of 332,892 MT.
University of Asia and the Pacific Center for Food and Agribusiness Executive Director Marie Annette Galvez-Dacul said high global rice prices during the first half may have slowed orders for foreign rice.
“Higher world prices (may have caused) importers to see not much gain even with the lower Philippine import tariffs,” Ms. Dacul said via Viber.
President Ferdinand R. Marcos, Jr. signed Executive Order No. 62, which reduced rice tariffs to 15% until 2028, as an inflation-containment measure. The new tariff regime is subject to review every four months.
“The lower 15% tariff was intended to bring in rice and lower retail prices. However, it is not happening. Thus, bringing it back to 35% will just slow down shipments more,” she said.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. said last week that the Department of Agriculture does not plan to recommend raising tariffs at the upcoming review, as retail prices have not dropped in the face of slower import shipments.
“It seems that the tariff cut has not worked. In the meantime, we are losing tariff revenue,” Federation of Free Farmers National Manager Raul Q. Montemayor said via Viber.
The BPI said Vietnam remained the top supplier of rice as of late June, accounting for 76.8% of all imports in the year to date. Shipments totaled 2.09 MMT.
In January, the Philippines and Vietnam signed an agreement giving the Philippines a quota of 1.5 MMT to 2 MMT of rice annually for five years.
“Reports indicate that Vietnam has raised its prices, which means they have been the beneficiaries of the tariff cuts, not our consumers,” Mr. Montemayor added.
Thailand supplied 368,530 MT during the period, or 13.5% of the total, followed by Pakistan with 5.7% or 156,121 MT.
Rounding out the top five were Myanmar and India which shipped 66,910 MT and 21,890 MT of rice, respectively.
The Philippines imports about 20% of its rice requirement amid inadequate domestic production, but also to tame high rice prices. — Adrian H. Halili