Rice supply in source countries adequate amid harvest concerns

THE PHILIPPINES can tap adequate supplies of rice from its source markets overseas after rice farmers planted less last year due to low farmgate prices, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said.

“Many farmers did not plant late last year due to low palay (unmilled rice) prices,” he told BusinessWorld via WhatsApp, adding that the Philippines is “lucky” that the expected decline in first quarter output is not as severe.

The Philippine Statistics Authority (PSA) forecast palay production to decline 7.1% year on year to 4.36 million metric tons (MT) in the first quarter, based on the standing crops as of Feb. 1.

The area to be harvested is estimated to drop 6.2% year on year to 1.08 million hectares, the PSA said.

Mr. Laurel said rice supply remains sufficient in major suppliers such as Vietnam, India, and Myanmar, but added that freight costs will be the main component affecting the price paid by consumers due to the Middle East crisis.

Meanwhile, Mr. Laurel said rice imports this month could slightly exceed the initial projection of 150,000 MT per month in March and April.

“It might exceed a bit. There is no real cap — it is just a sort of gentlemen’s agreement (between the DA and importers) to help farmers during the peak of the harvest,” he said.

As of March 12, rice imports topped 103,000 MT, according to the Bureau of Plant Industry. — Vonn Andrei E. Villamiel