Rice imports will resume primarily to build buffer stocks while the country awaits the main harvest expected from late February to March, according to Rosendo So, chairman of the Samahang Industriya ng Agrikultura (SINAG).
In an interview on Magandang Umaga Pilipinas, So said that there is no immediate rice shortage, noting that shipments that entered the country up to October last year were sufficient for current needs.
He explained that incoming imports are intended mainly for buffer stocking to bridge the supply until local harvests begin.
“So far naman, yung pumasok na bigas up to mga October last year, enough naman. Sa ngayon, yung papasok for buffer stock siguro.”
So said farmgate prices are unlikely to rise significantly once harvesting starts, citing the impact of lower tariffs and declining global rice prices.
He projected farmgate prices to range from around ₱17 to ₱18 per kilo during the harvest period, slightly above the break-even level of about ₱16 per kilo, but still below the ideal ₱20 per kilo that would allow farmers to earn more.
The SINAG official attributed weak farmgate prices to the sharp drop in global rice prices and reduced tariffs.
He said world market prices fell from about $610 per metric ton in June 2024 to around $355 per metric ton currently. Combined with the reduction in rice tariffs from 35 percent to 15 percent, he said the total decrease in prices reached nearly 52 percent, significantly affecting palay prices at the farm level.
Because of this, So reiterated calls to raise tariffs back to as high as 35 percent to help support farmgate prices and allow farmers to earn better income.
On buffer stocks, So said imports arriving around March and April would serve as temporary reserves, noting that existing stocks could cover demand until early March.
“Sa ngayon maganda yung tayo ng ating mga alay. Yung pagtanim naman last time, medyo maganda naman ang tayo ng ating palay. Medyo na-delay yung planting season. Pero ang tingin naman natin, maganda naman yung standing crop natin ngayon.”
He added that the National Food Authority’s (NFA) budget remains almost the same as last year, and it is not expected to significantly increase its purchases of local rice grain.
“Ang NFA almost the same with last year. Yung budget ng NFA. So we don't expect na mas malaki ang bibili ng NFA compare last year.”
While the NFA focuses on buying from local harvests, So said its procurement typically accounts for only about 2 to 3 percent of total production, with traders and millers still purchasing the bulk of the harvest.
Despite some delays in planting, So expressed optimism about the upcoming harvest, saying the standing crop is generally in good condition and bulk harvesting is expected toward the end of February through March.
