Record-Breaking Rice Imports Volume

The Philippines imported a record-breaking 4.68 million metric tons (MT) of rice in 2024, marking a nearly 30% increase from the 3.61 million MT imported in 2023. This surge in imports helped address domestic stock shortfalls and stabilize retail prices, particularly during periods of extreme weather.

Top Suppliers of Imported Rice

Vietnam remained the dominant rice supplier, contributing approximately 3.56 million MT or 75% of total imports. Thailand followed with 598,157 MT, while Pakistan supplied 283,517 MT. Other contributing countries included Myanmar, India, China, Japan, Cambodia, Taiwan, Italy, and Spain.

Factors Driving Increased Imports

Several factors drove the increase in rice imports. Extreme weather conditions during the first half of the year reduced domestic production, prompting the country to rely more on imports. Additionally, President Marcos' Executive Order 62 lowered rice tariffs from 35% to 15%, encouraging private entities to purchase larger volumes from abroad. This measure aimed to control rice prices and mitigate inflationary pressures.

Rice Inflation Trends

The Philippines saw a decline in rice inflation rates toward the end of 2024. After peaking at 24.4% in March, rice inflation dropped to 0.8% by December, marking the slowest rate in three years. Despite this progress, the annual average rice inflation in 2024 stood at 15.8%, higher than the 8.1% recorded in 2023.

On December 1, 2024, rice stocks reached a two-year high of 2.55 million MT, reflecting a 34.5% increase compared to 1.89 million MT in December 2022. Over half of this inventory came from the commercial sector, with 59.1% attributed to commercial entities, 35.2% to households, and 5.6% to National Food Authority (NFA) warehouses.

Sector-Specific Inventory Insights

• Commercial Stocks: Expanded by 77.1% year-on-year to 1.51 million MT.
• NFA Warehouses: More than doubled to 144,050 MT, driven by improved palay procurement.
• Household Stocks: Declined by 9% year-on-year to 897,920 MT.

Month-on-month, the total inventory grew by 3.6% compared to November 2024 levels. Commercial sector stocks increased by 6.3%, while NFA stocks rose by 1.7%. However, household inventories dropped slightly by 0.4%.

Conclusion

The Philippines' record rice imports and improved inventory levels highlight the country's efforts to stabilize the market amidst production challenges. While tariff reductions and strategic imports eased inflationary pressures, continued attention to domestic production and procurement strategies will be essential in ensuring long-term food security.









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