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China replaces Philippines as biggest rice importer
MANILA, Philippines — China is seen to regain its status as the world’s biggest rice importer as the Philippines is expected to see a reduction in rice imports this year due to higher local production.
Based on the latest report of the United States Department of Agriculture-Foreign Agricultural Service, the country’s rice imports are projected to reach 2.2 million metric tons this year, down 10 percent from 2020.
This year’s imports were revised downward from the earlier forecast of 2.6 million MT.
“Global rice production and consumption are forecast higher primarily on larger crops in Indonesia, the Philippines, and Sri Lanka and higher use in China,” the USDA said.
Because of this, the Philippines will no longer be the world’s biggest importer, a title the country held for the last two years following the liberalization of the rice industry which basically opened floodgates for more imports.
China is expected to buy 2.8 million MT this year as lower production will prompt more imports to satisfy demand.
Meanwhile, local production for the Philippines is likely to increase to 12.2 million MT from 11.9 million MT on the back of higher area planted and better yields.
This as the Department of Agriculture continues to implement programs to boost production through quality seeds, machinery, farm credit and extension through the Rice Competitiveness Enhancement Fund.
Apart from higher production, the USDA noted that high export prices for Thailand and Vietnam rice are also lessening rice purchases by the Philippines.
In fact, Thai rice increased to $557 per MT as exporters source white rice for shipments that were delayed due to container shipment shortages.
Vietnamese rice slightly went up to $516 per MT, the highest in nearly a decade as supplies tighten ahead of the next harvest.
Vietnam and Thailand are the largest suppliers to the Philippines due to their proximity, competitive prices and lower import tariffs.
However, the two Asean neighbours experienced drought last year, limiting their exportable supplies for 2021.
Source: https://www.philstar.com/business/2021/02/11/2076795/china-replaces-philippines-biggest-rice-importer