THE Philippines has overtaken China as the world’s top rice importer, according to the latest report by the United States Department of Agriculture (USDA), as the country grapples with surging prices of the staple commodity.
The USDA’s latest “Grain: World Markets and Trade” report estimated that the total rice importation of the Philippines for the 2022-2023 trade year hit 3.9 million metric tons compared to China’s 3.5 million metric tons.
For the 2023-2024 marketing period, the projected importation for the Philippines is at 3.8 million metric tons as compared to China’s 3.5 million metric tons, the report showed.
Despite that, the USDA said it observed a delay in purchases due to the global prices.
“In 2008, top importer the Philippines continuously bought larger volumes as prices escalated; this year, it is delaying purchases, awaiting lower prices,” the USDA report said.
India is a top rice exporter but the report said it sent “shockwaves” to the global rice market due to its export ban on milled white rice, among others. The second and third largest suppliers are Thailand and Vietnam.
Meanwhile, a report by the Food and Agriculture Organization said that rice prices jumped 9.8 percent in August.
Arresting high rice prices
In the Philippines, President Ferdinand Marcos Jr. set a rice price ceiling to temporarily alleviate the surging prices of the staple grain.
The measure, while widely welcomed by consumers, directly hit small rice retailers which prompted the government to release a P15,000 cash subsidy to affected sellers.
The Department of Finance and the National Economic and Development Authority, meanwhile, suggested the temporary reduction or suspension of rice import tariff to augment supply and to help lower market prices.
Marikina Second District’s Rep. Stella Quimbo proposed the same tool under the Philippine Rice Emergency Response Act, which she filed in Congress. It also seeks to grant the president power to impose other measures to temper prices in emergency situations.
Business groups, retailers, and farmers are divided on the proposed removal of rice import tariff, especially since the harvest season is about to start in the next few weeks.
Bantay Bigas spokesperson Cathy Estavilla said it’s time for the government to revisit the country’s rice policies as well as for Marcos to relinquish his post as the Secretary of Agriculture. (ABS-CBN News)
