Philippines Receives 295,000 Metric Tons of Rice in India’s Best ‘Special’ Deal
Published on: October 19, 2023.
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October 19, 2023
India Approves Export of Non-Basmati White Rice to Multiple Countries, Philippines Receives Largest Allocation
The Indian government has recently authorized the export of over 1 million metric tons of non-basmati white rice to seven different countries. Out of these countries, the Philippines is set to receive the highest allocation. This decision comes in spite of India’s export ban on rice.
According to the Ministry of Commerce and Industry’s notification on October 18, a total of 1.03 million MT of rice will be exported to Nepal, Cameroon, Cote d’Ivoire, Republic of Guinea, Malaysia, the Philippines, and Seychelles. The export process will be carried out under a government-to-government (G2G) scheme managed by India’s National Cooperative Exports Ltd.
While this development allows the possibility for the Philippines to secure rice from India, Raul Montemayor, the national manager of the Federation of Free Farmers, highlights that it is not guaranteed. Montemayor explains that factors such as price and quality will determine whether local importers opt for Indian rice. He also notes that India’s allocated volume, while significant, is not enough to fulfill the Philippines’ total annual rice import requirement of approximately 2.5 to 3 million MT.
Among the seven recipient nations, the Philippines emerges as the largest recipient of Indian rice, with 295,000 MT, constituting 28.5 percent of the total allocation. Cameroon follows behind with 190,000 MT.
The Indian ban on non-basmati white rice exports was established in July of this year as a measure to stabilize the country’s supply and control rising prices. However, the World Trade Organization questioned this move due to its impact on global food markets.
Despite the approval for Indian rice exports, Vietnam continues to be the top supplier of rice to the Philippines, based on the latest government data. As of September 6, the country imported a total of 2.68 million MT of rice, with Vietnam accounting for 89.75 percent or 2.4 million MT. In comparison, India’s contribution was a mere 13,579.39 MT, making up only 0.5 percent of the total.
Agriculture Undersecretary Leocadio Sebastian anticipates that the Philippines’ rice imports may reach 3.1 million MT this year, while the US Department of Agriculture predicts 3.5 million MT. Meanwhile, the Bureau of Plant Industry’s director, Gerald Glenn Panganiban, assures the country of a stable rice supply in the last three months of the year, as the expected harvest amounts to 1.9 million MT, providing a buffer stock for 74 days.
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