philippines reduces rice imports this year according to USDA
Published on: April 12, 2024.
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**Philippines to Import Less Rice This Year – USDA**
*Photos show workers unloading sacks of rice from a truck along Dagupan St. in Manila on February 7, 2024.*
The United States Department of Agriculture (USDA) has revised its rice import forecast for the Philippines, predicting a lower importation of 3.9 million metric tons (MT) based on the country’s expected improved harvest. This forecast has been reduced by 200,000 MT from the previous estimate of 4.1 million MT in March.
The USDA attributes this decrease in rice imports to the anticipation of a larger crop within the Philippines this year. The agency now foresees a production of 12.6 million MT of rice, an increase of 300,000 MT from the earlier projection of 12.3 million MT.
In its latest monthly global grain report, the USDA states that global rice production is expected to be higher, mainly due to larger crops in Bangladesh and the Philippines. The agency now forecasts a global rice output of 53.448 million MT, as opposed to the previous forecast of 53.338 million MT.
According to USDA data, the Philippines expects its palay yield (unmilled rice) to reach 4.17 MT per hectare compared to last year’s 4.13 MT per hectare. This estimation is also higher than the 4.07 MT per hectare projected last month by the USDA.
Although the projected rice importation for the year has decreased, the Philippines will remain the world’s top rice importer. The USDA maintains its projection for the country’s total rice requirements, including consumption and residual, at 16.5 million MT.
Furthermore, the USDA anticipates that the Philippines will become a growing market for Pakistani rice exports. This follows the reduction of tariff rates on rice imports from Pakistan to 35 percent, eliminating the advantage of ASEAN member-countries and making Pakistani exports more profitable in the Philippines. Taking advantage of this opportunity, Pakistan has already shipped 150,000 metric tons of rice to the Philippines since the tariff reduction.
Agriculture Secretary Francisco Tiu Laurel Jr. has previously stated that the USDA’s earlier rice import forecast of 4.1 million MT for the Philippines is a worst-case scenario, as the Department of Agriculture (DA) is targeting another record-high palay harvest this year.
Last year, the Philippines imported 3.9 million MT of rice, according to USDA estimates. However, the government’s Bureau of Plant Industry reported a lower figure of 3.6 million MT for rice imports. In the first quarter of this year, rice imports increased by 44 percent, reaching 1.154 million MT compared to 801,732 MT during the same period last year, based on data from the BPI.
**Source:** [Philstar](https://www.philstar.com)
