Rice imports reach 2.5 MMT in January-November
Published on: December 16, 2021.
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The country’s rice imports in January to November have expanded by more than 25 percent to 2.5 million metric tons (MMT) from 1.98 MMT a year ago, latest Bureau of Plant Industry (BPI) data showed.
Figures released by the attached agency of the Department of Agriculture (DA) showed that rice imports during the 11-month period had already surpassed the 2020 import volume of 2.099 MT.
Historical data from the Philippine Statistics Authority (PSA) indicated that rice imports this year have exceeded the second largest import volume recorded in 2008, when purchases reached 2.4 MMT.
The Philippines recorded the largest import volume in 2019, when its purchases reached 3.1 MMT. The government had deregulated the rice industry that year, which made it easier for traders to import rice.
BPI data indicated that rice purchases as of December 9 have reached 2.6MMT. Vietnam was the country’s top source of imports, accounting for 2.218 MMT of shipments during the period.
Davao-based Nan Stu Agri traders remained as the country’s top rice importer with 147,822.95 MT followed by Lucky Buy and Sell with 117,821.6 MT, based on BPI data.
SPS issuances
Figures from the agency also indicated that the government did not pause the issuance of sanitary and phytosanitary import clearance (SPS-IC) for rice imports unlike in the past two years.
BPI suspended the issuance of SPS-ICs in September-October 2019 and in October-November 2020, which coincided with the harvest season.
This year, data from the BPI showed that the agency continued to issue rice SPS-ICs. It issued 400 SPS-ICs in November, which corresponds to an import volume of 303,329.606 MT. From December 1 to 4, the BPI issued 43 SPS-ICs for an estimated volume of 42,662 MT.
From January to December 4, the BPI issued a total of 5,927 SPS-ICs for 5.22 MMT of rice imports.
“This shows that [the government is] not actually managing the imports but is allowing an unlimited volume to come in despite the bumper harvest. Perhaps, the government wants to ensure that the country will not grapple with supply problems,” Federation of Free Farmers National Manager Raul Q. Montemayor told the BusinessMirror.
“We have already imported more than what is needed. What is the point of allowing even more imports? For sure, the prices of palay will drop during the dry season harvest in March.”
The United States Department of Agriculture had projected that the country’s total rice imports this year would reach 2.6 MMT, which would make the Philippines the world’s third largest rice importer.
The Philippines is on track to achieve its palay harvest target of 20 MMT this year if production momentum will be sustained after first-half output grew by almost 5 percent to a record 8.8 MMT.
In September, the DA said it is targeting to expand the country’s unmilled rice production by 5 percent to a record 21 MMT next year via its P55-billion investment in the sector.
Source: https://businessmirror.com.ph/2021/12/15/rice-imports-reach-2-5-mmt-in-january-november-bpi/
