The Philippines is delaying its purchases of imported rice, following the trend of other countries, due to high prices in the global market, according to the US Department of Agriculture (USDA).
According to the USDA’s Foreign Agricultural Service (FAS), the country is expected to import 3.8 million metric tons (MT) of rice for marketing year 2023 to 2024, a 2.6% decrease from the previous year’s 3.9 million MT.
READ: Keeping PH fed: More rice imports loom but at higher costs
The report stated that in 2008, during a period of high prices, the Philippines imported large volumes of rice. However, this year, it is postponing purchases in hopes of lower prices.
The Federation of Free Farmers (FFF) commented on the situation, saying that importers are hesitant due to uncertainty over government policies and international price movements.
READ: ‘Wild, inexplicable’ rice data hit
The USDA-FAS reported that global rice prices were on the rise until India imposed a moratorium on rice exports, resulting in higher demand from importers and lower production in exporting countries. As a result, Vietnam’s export quotes increased by $31 to $643 per ton, while Pakistan’s quotes rose by $45 to $610 per ton.
Thailand’s prices, however, declined by $13 to $643 per ton as buyers held off on purchases in anticipation of lower prices. India’s export quotes have been unavailable since the export ban was implemented on July 20.
“In the past week, prices started to decline from their peaks,” said the USDA-FAS.
Lower global supply
The USDA-FAS predicts a decline in exports due to India’s ban on exporting basmati white milled rice and Burma’s slow export pace. It also expects reduced demand from China and Burkina Faso.
READ: IMF: India’s rice restrictions could fuel food price inflation
According to data from the Bureau of Plant Industry, the Philippines has already imported 2.33 million MT of rice as of Sept. 7, accounting for almost 61% of last year’s total imported rice. The majority of imports came from Vietnam, followed by Pakistan and India.
The tariff rate for imported rice currently stands at 35%, but there are proposals to reduce or eliminate these tariffs. The Tariff Commission will hold a hearing to discuss these proposals on Friday.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
