The country will have enough rice to meet the local consumption until the start of the next harvest season in March 2024, the Department of Agriculture (DA) said Wednesday.
Augmenting the local harvest are 495,000 metric tons of rice imported by private traders due to arrive between December and early February 2024, DA Undersecretary Roger Navarro said in a statement.
“We received reports that around 100,000 tons of imported rice has already arrived in the country. This is part of the 495,000 metric tons (MT) committed by import permit holders to Secretary [Francisco] Tiu Laurel,” Navarro said.
These imports and the local harvest would be sufficient for the national consumption estimated at 36,000 MT a day, until the next harvest starts in March, he added.
There are also 40,000 bags of rice donated by Taiwan, equivalent to about 2,000 MT, half of which has already been delivered.
Some 295,000 MT of rice from India is also coming in the coming weeks, after the Indian government approved the export of the grain to the Philippines in October, despite its general export ban of non-basmati white rice.
Navarro said about 76,000 MT of rice from Taiwan and India would reach the country before the year ends.
Economic managers, especially the Bangko Sentral ng Pilipinas (BSP), are closely watching the supply and cost of rice due to its impact on inflation.
The BSP has aggressively raised interest rates since last year to tame inflation, which affects the purchasing power of consumers and undermines economic growth.
Meat imports
Meanwhile, the country’s biggest group of meat importers welcomed the President’s decision to keep import duties on imported meat low for another year, until December 2024, saying this would address supply constraints and ease prices.
Philippine Association of Meat Processors, Inc. (PAMPI) commended the President and his economic team for extending the temporary reduction of duties on rice, corn and pork, as spelled out in Executive Order No. 10.
‘We believe it is a step in the right direction, as it will tame food inflation and make these vital commodities affordable to consumers,’ PAMPI vice president Jerome Ong said.
The group said the EO may evolve into a win-win solution for imports and agriculture producers when combined with effective sanctions against smugglers and hoarders, as well as continued support for farmers.
On the other hand, the Philippine Chamber of Agriculture and Food, Inc. (PCAFI), the country’s largest association of farmers, said the extended tariff reduction may not curb the problem of rising prices.
“It is only the traders and importers who will benefit from this and will only bring further discouragement to local production,” said PCAFI president Danny Fausto.
EO 171, issued in 2022, reduced the most favored nation (MFN) tariff rates for key commodities such as fresh, chilled or frozen pork, maize or corn, rice, and coal.
In December 2022, President Marcos issued EO 10, extending the effectivity of EO 171, thus sustaining the reduced tariffs on imported rice, corn and pork.
The government said the decision to extend the validity of the reduced MFN tariff rates aims to protect consumers by keeping prices affordable while ensuring food security.
The EO is also seen to create a pathway to augment local supply of basic agricultural commodities, reduce the cost of electricity, and diversify the country’s market sources.
Senator Imee Marcos, the President’s sister, said the lowering of tariffs on imported meat, rice and corn have not brought down prices to the promised pre-2021 levels.
“Today as we anticipate the additional worldwide threat of El Nino, can we persist with that failed scheme of cheap importation to lower food prices?” she said.
She said relying on imports and modifying the rates are not sustainable policies because other countries are limiting their exportation of food to serve their domestic needs first.
She also asked if the government could adequately subsidize local farmers, given the reduced collection of import duties.
Senator Marcos said there is no shortcut to agricultural sufficiency, and urged the government to speed the completion of irrigation facilities, and to build long-promised warehouses and food storage and cold chain facilities.
The private sector, she said, must invest in the countryside, especially in value adding, processing and distribution.
“Our young farmers need P2 billion [for] consolidated farmland, agricultural machinery and training, [and] access to capital and markets–everything we have known for a long time but still refuse to provide,” she said.