Jasper Emmanuel Arcalas – The Philippine Star

MANILA, Philippines — The Philippines’ rice import requirement may increase after the Philippine Statistics Authority (PSA) revised a key parameter used by the government in estimating the country’s domestic production and supply of the staple.

After three decades, the PSA revised downward its benchmark conversion ratio of palay to milled rice to reflect current industry realities and ensure more accurate policymaking in the rice sector.

The PSA board chaired by National Economic and Development Authority Secretary Arsenio Balisacan issued a resolution that formalized the adoption of a lower milling recovery rate (MRR) of palay at 63 percent.

Previously, the PSA used a palay MRR of 65.4 percent, which has been the established rate of the statistical agency since 1995.

The new MRR would impact how the PSA estimates the country’s milled rice production, inventory and overall supply.

Based on the 63-percent MRR, the country, on average, produces 630 grams of rice out of one kilo of palay.

Using the previous MRR, the PSA estimates 654 grams of rice is produced for every kilo of palay milled nationwide.

“It is noted that the conversion ratios and parameters adopted for most, if not all the commodities, have been held constant over a relatively long period of time,” Balisacan said.

Industry sources said the change in the MRR is substantial since a percentage difference in the conversion rate would affect the extent of the volume that the country needs to import to plug domestic supply shortfall and meet overall demand for the staple.

This, they emphasized, is critical in the government’s policymaking, particularly in ensuring that the country has sufficient rice supply to prevent any price spikes in the market.

“The PSA’s adoption of a 63-percent milling recovery rate lowers official milled rice output, reducing supply, increasing import needs and affecting stock inventory planning,” said Marie Annette Dacul, executive director of University of Asia and the Pacific’s Center for Food and Agri Business.

Dacul pointed out that some rice mills in the country may even have an actual recovery rate of as low as 60 percent due to old age while modern ones are capable of hitting above 65 percent.

Raul Montemayor of the Federation of Free Farmers said the 63 percent rice MRR adopted by the PSA is “more accurate” since local mills have “relatively poor milling recovery rates.”

“In fact, some would suggest even going down to 60 percent to be conservative,” Montemayor added.

In revising the palay MRR, the PSA undertook a comprehensive review and study of the parameter last year that involved informant interviews, actual visits to rice mills, focus group discussions with key government officials and desk research.

The PSA also presented its updated palay MRR to concerned units of the Department of Agriculture (DA) to solicit their comments about the matter.

The PSA noted that the DA did not oppose the lower palay MRR and even “acknowledged” that a “more precise” parameter was needed to “support better data collection, analysis and policymaking” in the rice sector.

The country imported a record-high of 4.8 million metric tons last year, Bureau of Plant Industry data showed.

Published Date: March 10, 2025