The Philippines has no choice but to continue to import more rice and sugar due to lower local production.
In one of his last policy statements, outgoing Agriculture Secretary William Dar will leave to his predecessor, no less than President-elect Ferdinand Marcos Jr., the arduous task of ensuring sufficient supply of these commodities through importation at a time of rising costs and strengthening dollar.
According to Dar, farmers have been using less fertilizer due to high cost, resulting in low production.
Dar told a briefing yesterday the country historically brings in up to 2 million metric tons (MT) of imported rice but said this volume could be raised by the next administration.
“In times of crisis, we should not be complacent, I’d rather we can go beyond that,” Dar said, adding he is aware some quarters may be against his views.
“We have to secure a much lower price of rice during this crisis,” he said.
Dar said about 1.5 million MT of rice have arrived and 500,000 MT will arrive between July and the end of the year.
“Hopefully, the incoming president will decide soon if we will import beyond the 500,000 MT,” Dar said.
He added the next administration must allot P15 billion in fertilizer subsidies for rice farmers to keep the current level of production.
Dar said the Philippine Rice Research Institute estimates low fertilizer usage could cut palay output by between 1.1 and 1.3 million MT.
This year’s palay production for the first semester has dropped 6.8 percent so far.
“If (the reduction) happens and you don’t have imported rice that can fill in, the consequence would be high prices,” Dar said.
Undersecretary Leocadio Sebastian said without the fertilizer subsidies, rice production this year can go back to the 2020 production level of 19.3 million MT, lower by more than 3 percent from the record 2021 harvest of 19.96 million MT.
Hermenegildo Serafica, Sugar Regulatory Administration (SRA) administrator, also cited the need to import more sugar on top of the 200,000 MT covered by Sugar Order 3.
Serafica, however, did not say how much volume is needed and that the decision would be up to the next administration.
“The ideal buffer stock should be 200,000 to 250,000 MT of raw sugar and another 200,000 to 250,000 MT of refined sugar. Unfortunately, even our carryover supply last year… as well as our buffer stock are used up because of the delayed importation,” Serafica said.
He said as of the week ending June 19, the country’s raw sugar supply will last until August 4 at 248,195.40 MT while refined sugar will last until July 29 at 2,180,081 of 50 kg bags (LKg).
DA’s monitoring of 13 public markets in the National Capital Region on June 29 showed refined sugar costs P85 per kg while both washed sugar and brown sugar are at P65 per kg as of yesterday
For imported rice, special variety is at P50 per kg; premium at P46.50 per kg; well-milled at P42 per kg; and regular milled at P37.50 per kg.
For local rice, the special variety is at P50 per kg; premium at P45 per kg; well-milled at P40 per kg; and regular milled at P38 per kg.
