PH seen to reduce rice imports
Credit to Author: EIREENE JAIREE GOMEZ| Date: Mon, 13 May 2019 16:23:49 +0000
PHILIPPINE rice imports is expected to fall by 3.5 percent or 100,000 metric tons (MT) for marketing year (MY) 2019/2020 due to ample stocks and larger forecast production, the United States Department of Agriculture (USDA) said.
In its latest ‘Grain: World Markets and Trade’ report, the USDA said that despite the projected lower rice imports, the country is seen to be the second largest rice-importing country, following China which is expected to import 4 million MT.
Since the last few years, the country’s total rice imports have been increasing. In MY 18/19, rice imports stood at 2.8 MMT, significantly higher than the 2.5 MMT and 1.2 MMT recorded in MY 17/18 and MY 16/17 respectively.
For MY 19/20, the USDA attributed the projected lower rice imports on ample stocks of the staple due to the projected larger crops.
“The quantitative restrictions on rice imports have been replaced with tariffs, with a tariff advantage for the Association of Southeast Asian Nations member countries,” the USDA explained on the projected lower rice imports for MY 19/20.
On the other hand, consumption is expected to increase by nearly 4 percent to 14.45 million MT in MY 19/20 from 13.90 million MT a year earlier “on both abundant local supplies and relatively low-priced imports,” the USDA said.
The agency said the country’s ending stocks of the staple would hit 3.634 million MT for MY 19/20, a 14.2-percent increase from 3.174 million MT in the previous MY.
Meanwhile, the USDA kept its earlier projection for Philippine wheat imports unchanged at a record-high of 7 million MT due to “strong growth in both food and feed use.”
The country’s wheat imports have consistently increased since 2016. Total imports in that year reached 4.918 million MT, which significantly expanded to 5.704 million in 2017 and 5.987 million MT last year.
About 95 percent of the country’s wheat requirements are being sourced from the US.
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