Philippines eyes importing 330,000 tonnes of rice

The Philippines is one of the world’s biggest rice importers. It usually imports rice from Vietnam, Thailand, India, and other producers in Asia. (Photo: VNA)

The Philippines’ National Food Authority (NFA) has proposed importing 330,000 tonnes of rice to cover an expected deficit in its buffer stock.

The move was made as the Philippine government wants to curb the cost of the staple grain and limit upwards inflation pressure.

According to a statement released on April 14, the country's presidential palace asked the NFA to strengthen its buffer stocks for emergency relief operations, but ramping up its purchases from local farmers could push domestic prices higher.

Domestic rice prices in the Philippines have increased, with the cheapest variety now selling at 36-44 pesos (0.65-0.80 USD) per kilo, up from 35-38 pesos at the start of the year.

Meanwhile, the country’s inflation eased in March to 7.6%, which is still 2-4% higher than the targeted rate.

The government is now looking at non-monetary measures to address price pressures, while the central bank has signaled a pause in interest rate hikes.

The Philippines’ year-end rice inventory is estimated at 1.69 million tonnes, equivalent to a 45-day buffer stock, just half of the ideal 90-day stock needed to stabilise prices, the statement said.

President Ferdinand Marcos Jnr, who is also the agriculture secretary, said he is looking at “all measures” to curb rice prices.

The Philippines is one of the world’s biggest rice importers. It usually imports rice from Vietnam, Thailand, India, and other producers in Asia./.