USDA projects lower rice imports for PH in 2020

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Total rice imports in the Philippines this year may decline 20.6% compared to last year due to the suspension of issuance of additional import permits, the United States Department of Agriculture said.

In its latest Grain: World Markets and Trade report, the agency said rice imports to the country for 2020 may reach 2.3 million metric tons, down from 2.9 million in 2019. This is also lower than the agency's previous estimate of 2.5 million MT.

"Private sector imports in the Philippines have been stymied in recent months as the government has stopped issuing new import permits with unrest in the farm sector," the USDA said. The Department of Agriculture earlier suspended the issuance of sanitary and phytosanitary import clearances to cooperative and irrigators' associations after receiving reports these organizations have resorted to rice imports instead of procuring from local rice farmers as they are mandated to do so.

Despite the expected lower volume, the country is still seen to be one of the world's top importers together with China, which is also seen to import 2.3 million MT this year. Moreover, the USDA sees around 2.6 million MT of rice to enter the Philippines next year, while China is seen to lower imports to 2.2 million.Republic Act No. 11203, or the Rice Tariffication Law, liberalized the entry of imported rice in the country as long as importers pay their rice duties.

For 2020, the DA is seeing a total of 2.3 million MT of rice imports, lower than the nearly 3 million last year. As of November 6, total volume of imports reached 1.9 million MT according to government data.

 

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