MANILA, PHILIPPINES — Despite record production and ample stocks, the Philippines is expected to import a record volume of rice in the 2024-25 marketing year, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

The FAS said the projected import total of 4.7 million tonnes, which matches last year’s record high, is “spurred in part by high domestic prices and the recent government decision to reduce tariffs from 35% to 15%.”

The Philippines is by far the world’s largest rice importer and perennially ranks among the top five in consumption.

Milled rice production is forecast slightly higher than the previous year at 12.7 million tonnes, the report said, as the country emerges from the current El Niño weather pattern and government spending on inputs and machinery offsets a slight drop in yields.

“The slight increase in production from 2023-24, however, will still fall well short of demand,” the FAS said.

Rice consumption is projected at a record 17.2 million tonnes, with the FAS noting that demand “remains durable despite inflation.”

Ending stocks are expected to reach a record 4.2 million tonnes in 2024-25 as the government encourages dealers to maintain buffer stocks, the report said.“There will be some motivation to sell due to lower prices likely resulting from reduced tariffs as well as the wet season harvest in the fall,” the FAS said. “But industry sources report that traders are holding steady on stocks, particularly as they bought at a higher price and are still hoping for better margins.”

Published Date: July 12, 2024