THE Manila office of the United States Department of Agriculture (USDA) said that Philippine rice imports could hit 5.3 million metric tons (MT) by year-end due to low local production, higher than its initial forecast of 5.1 million MT.
The agency previously said the Philippines was buying record amounts of rice from abroad due to population growth and reduced import tariffs. Executive Order 62, which President Ferdinand Marcos Jr. signed in June, slashed taxes on imported rice to 15 percent to drive down retail prices and help temper inflation.
Data from the Philippine Department of Agriculture-Bureau of Plant Industry showed the country had shipped 4.35 million MT of the staple as of Dec. 5, surpassing last year’s 3.6 million MT and close to breaching the record-high import volume of 3.82 million MT in 2022.
The USDA noted the Philippines will remain a primary destination for Vietnamese exports due to logistical advantages and competitive prices.
Export quotes of Vietnam decreased by $9 to $508 per ton, while Thailand rose by $16 to $514/ton. Pakistani quotes also fell by $10 to $452/ton, the most competitive following India.
Rice consumption this year is projected at 17.2 million MT, with an ending inventory of 3.7 million MT, the USDA said.
Earlier, the DA said it was expecting a stable rice supply by year-end, enough to cover consumption for 100 days, despite El Niño and recent typhoons.
Meanwhile, the Philippine Statistics Authority reported palay (unmilled rice) production in the third quarter would be 4.62 million MT, down 1.0 percent for the previous quarter’s estimated 4.67 million MT.
Total annual palay production is seen to reach 19.41 million MT, equivalent to some 12.69 million MT of milled rice, excluding the forecast loss of 358,000 MT based on historical damages and actual risks this quarter.
The projected milled rice production is higher than the USDA’s latest forecast of 12.3 million MT.
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