RP rice imports may reach 2-million tons this year, says Yap

MANILA, Philippines – The Philippines may import up to two million metric tons of rice this year, based on a standby authority approved by the National Food Authority.

Agriculture Secretary Arthur C. Yap, said the standby authority does not mean that the Philippines will actually import that much. So far, he said the NFA has imported 1.5 million MT and its warehouses are all full.

An authority to import another 200,000 MT has been approved for use by the private sector.

However, Yap said, “we still have to see what the private sector will do.”

Thus, a remaining authority to import 300,000 MT remains on standby.

“I’ve learned my lesson from last year and refuse to comment on exactly how much we will import,” Yap said.

Last year, the Philippines imported 2.7 million MT following a rice price crisis that had several countries scrambling for rice.

The Philippines, being a major importer of rice, was blamed for causing a sharp spike in global rice prices.

Yap has assured that this year rice prices are expected to remain stable and will not experience wide swings as last year as the NFA has secured the bulk of its rice buffer stock for this year.

The 1.5 million metric tons of rice was secured from Vietnam at just below $500 per MT, almost 50 percent lower than the peak price the Philippines had to pay of $1,100/MT last year for its rice importations at the height of the global rice crisis.

The average price paid by the Philippines for its rice imports last year was just $750/million MT.

The 1.5 million MT was negotiated on a government-to-government basis and is scheduled to arrive on a staggered basis starting May, June, July and August.

The Philippines has an approved procurement budget for rice imports of up to 1.8 million MT.

Yap said the decision for further rice imports would be made by May  this year after the Department of Agriculture has the numbers on the main dry season palay harvest. –Marianne V. Go, Philippine Star