Agriculture chief says PHL to import rice through 2020 despite rising output

THE PHILIPPINES’ paddy rice output is expected to rise to meet 95-96% of the country’s annual requirement by 2020, from 93% last year, Agriculture Secretary Emmanuel F. Piñol said on Tuesday.
The latest forecast misses Mr. Piñol’s own target for the Philippines to be self-sufficient in rice production by 2020, but is in line with comments last week by President Rodrigo R. Duterte.
Mr. Piñol said this year’s paddy rice harvest is likely to exceed the 2017 record-high level of 19.3 million tons, taking into account the 4.6% improvement in first-quarter output from a year ago.
The Philippines is a frequent buyer of rice — mainly from Vietnam and Thailand — usually importing more than a million tons of the staple grain each year to meet domestic demand and maintain stockpiles. The region’s second most heavily populated nation after Indonesia with about 105 million people, the Philippines consumes roughly 11.7 million tons of rice every year.
The country limits private rice imports to protect its farmers, buying up to 805,200 tons of rice with a 35% import tariff, under an annual quota scheme covered by a World Trade Organization deal.
The National Food Authority, also buys rice free of tariffs.
Recent rice shortages have pushed up domestic prices and put pressure on inflation.
Mr. Duterte’s economic team has suggested restrictions on the volume of imports should be scrapped in favor of a scheme where all imports are subject to the tariff, which could push up private imports during poor harvests. — Reuters