The United States Department of Agriculture (USDA) forecasts higher rice imports for the Philippines due to domestic policy changes and market challenges arising from global factors.
The country's rice imports are forecast to reach 4.7 million metric tons (MT) this year, up from the 4.6 million MT previously projected by the agency. This is a 20-percent increase from the 3.9 million MT imported in 2023, making the Philippines potentially the top rice importer in the world.
The USDA cited Republic Act (RA) 11203, which liberalizes rice imports, and Executive Order 62 which reduced tariffs on rice imports to 15 percent, as the policies that favored the importation of the staple.
According to the July monthly report of the agency, total global imports of the staple are projected to rise to 54.29 million MT this year due to shipment increases to the Philippines, Malaysia, and Cote d'Ivoire.
Global rice production, meanwhile, is seen reaching 528.17 million MT, driven by increased production in Pakistan.
The agency noted that the Philippines was a major consumer of rice and had become the largest rice importer due to the policy changes.
It cited the passage of RA 11203, or the Rice Tariffication Law, in February 2019, which allows unrestricted importation of the staple by the private sector. The agency said that consumers had benefited from unrestricted rice importation as more low-priced rice was made available locally.
The measure also resulted in the increased consumption of rice from 14.4 million MT in 2019 to 2020 to a forecast of 17.5 million MT in 2024 to 2025.
"Imports have grown from 10 percent of consumption in 2017 to 2018 to now more than a quarter of consumption as the [Philippine government] policy priorities facilitate the growth of imports," the USDA said.
"This increased level of imports has resulted in closer connectivity between international and Philippine rice prices," it added.
From January to June, the Philippines imported roughly 2.3 million MT of rice, data from the Bureau of Plant and Industry showed.
Source: MSN
