The government must rethink its pro-import policy on rice as two of the world’s top suppliers of the grain intend to slash the volumes that will be made available for global trade, according to the Samahang Industriya ng Agrikultura (SINAG).
Last week, India ordered a stop to its largest rice export category to limit the increase in domestic prices. Vietnam said last May it will cut annual rice exports by 44 percent by 2030, citing the need to boost exports of higher quality rice while also ensuring domestic supply and environmental protection.
“Seven years is still a long time but we must change the narrative now. The most crucial is for the country’s economic team to accept that they failed miserably in equating unlimited rice importation and lowering rice tariffs as our primal solution to combat inflation. Rice is a vulnerable global commodity since less than 10 percent of all production are traded globally,” Jayson Cainglet, SINAG executive director, said in a statement.
According to Cainglet, the international rice market is considered “very thin” with only five major rice exporting countries: India, Vietnam, Thailand, Pakistan and Myanmar.
“The decision of India, with 30 percent of global rice production, and Vietnam, with 15 percent of total rice exports but (comprise) 80 to 85 percent of our rice imports, will heavily impact on all net rice importing countries, especially the Philippines, if we continue policies that incentivize a few privileged importers and favored traders,” Cainglet warned.
SINAG said the government should pour additional support to local rice producers apart from incentivizing local millers to promote food sovereignty and veer away from dependence to imports.
“The last two cropping seasons have been very positive to our rice farmers because of the extended help of the private sector buying palay from P21 per kilogram (kg) and up and the increased fuel and fertilizer subsidies from the government. Farmgate prices have increased and cost of producing palay has been reduced because of these interventions,” Cainglet said.
“These developments are encouraging farmers to plant and more institutional support from the DA (Department of Agriculture) would further encourage the local rice industry,” Cainglet added.
Based on data from the Bureau of Plant Industry, of the 3.83 million metric tons (MT) of imported rice that entered the country in 2022, 3.18 million MT or 83 percent was from Vietnam while 10,094.54 MT or only 0.26 percent was from India.
As of July 13, a total of 1.89 million MT of imported rice has arrived in the country, with the bulk at 88.9 percent or 1.68 million MT from Vietnam and only 12,023.89 MT or 0.64 percent from India.
Based on public markets monitoring by the DA in the National Capital Region as of Friday, the per kilogram price of imported rice ranges from P48 to P58 for special variety, P45 to P50 for premium and P41 to P48 for well milled.
No data is available on the price of regular milled rice.
For local rice, the special variety costs P48 to P60 per kg; premium, P42 to P49 per kg; well-milled, P40 to P49 per kg; and regular milled at P36 to P44 per kg.
