Philippines to buy up to 200,000 MT of US rice yearly
The Philippines plans to source up to 200,000 tonnes of rice annually from the US, following a PRISM-USA Rice MOU covering 100,000 tonnes in 2027 and 200,000 tonnes from 2028. The move diversifies supplies amid El Niño risks, projected 700,000-tonne production losses and record imports.
The Philippines is set to purchase up to 200,000 metric tons (MT) of rice from the United States (US) per year, as the world’s largest rice importer looks to expand its sources to reinforce domestic supply of the household staple.
The Philippine Rice Industry Stakeholders Movement (PRISM) said it signed a memorandum of understanding (MOU) with USA Rice Federation on Wednesday, Oct. 7, to restore US rice shipments to the Philippines.
Under the MOU, PRISM members are encouraged to consider the US as a viable source of their rice, with purchases conducted through open tenders and by working directly with members of USA Rice.
The agreement covers the purchase of 100,000 MT of American rice by next year, before doubling to 200,000 MT per year starting in 2028.
PRISM said it will now work with USA Rice, its members, and the government to facilitate this impending trade flow in a “timely manner.”
The US has historically been one of the major rice suppliers of the Philippines, supporting the country’s food security efforts from the 1960s to 1980s.
This partnership went up a notch from 1997 to 2007, as the US ramped up its shipments of rice to the country, largely through its partnership with state-run National Food Authority (NFA).
USA Rice president and chief executive officer (CEO) Peter Bachmann said the partnership with PRISM intends to bring this trade relationship back into the spotlight, especially following the enactment of the Rice Tariffication Law (RTL).
RTL, which liberalized the country’s rice trade policy by removing quantitative restrictions (QR) on imports, is seen to make US rice more commercially viable than before.
“Rice has a historic role as a part of the US-Philippine relationship so I was happy to sign this agreement here that recognizes our history and moves our industries forward,” said Bachmann.
He added that the MOU will provide American farmers and millers with an important market at a time when the US rice industry is in need of viable markets.
The agreement comes as the Philippines works on expanding its buffer stock of rice ahead of a projected decline in production due to the impact of a strong El Niño, which is expected to persist through next year.
Agriculture Secretary Francisco Tiu Laurel earlier said that the government is working to maintain about 75 days of rice supply to ensure food sufficiency and counter the projected losses in rice output of around 700,000 MT.
To strengthen local supply, the country is projected to import a record high of more than five million MT this year.
The latest government data showed that the Philippines has already imported 3.98 million MT as of Sept. 27, up by 17 percent from last year’s total rice imports of 3.39 million MT.
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Source : Manila Bulletin
