Rice imports decline by 36% in June

As traders await lower tariffs

MANILA, Philippines —  Rice imports declined by nearly 36 percent in June from a year ago as traders and importers canceled or  delayed their orders abroad in anticipation of the implementation of lower rice tariffs, an industry group said.

Bureau of Customs (BOC) data showed that rice imports in June fell by 35.7 percent to 154,644 metric tons from 240,521 MT in the same period last year.

“Importers canceled orders or withheld new purchases in anticipation of the decrease in tariffs to 15 percent,” Federation of Free Farmers (FFF) national manager Raul Montemayor said yesterday.

Montemayor said rice imports from January to May have been up by at least 30 percent, indicating the strong appetite of traders and importers to bring in foreign stocks despite tariffs remaining at 35 percent and elevated global rice prices.

On average, the FFF estimated that the country imported about 431,000 MT of rice during the five-month period.

“Imports were actually arriving in record volumes before EO (Executive Order) 62 was signed last June 20.  Importers are now delaying further shipments due to the uncertainty regarding the legality of EO 62,” Montemayor said.

The FFF refuted claims that the temporary restraining order (TRO) sought by farmers’ groups from the Supreme Court against EO 62 would cause rice supply shortages in the country.

The group noted that the 15 percent rice tariff would take effect on July 7, which is 15 days after the publication of EO 62 in a newspaper of major circulation last June 22.

However, the issuance of a TRO by the higher court would hold the implementation of the tariff reduction in abeyance.

The group pointed out that rice imports should still come in despite the injunction on EO 62 since the President’s previous EO 50 on rice tariffs remains in effect until the end of the year.

“We cannot be faulted for questioning an EO that is legally defective, and will bring serious harm to farmers.  This would not have happened if NEDA followed the law,” Montemayor said.

Philippine Rice Industry Stakeholders Movement founder and lead convenor Rowena Sadicon said rice importers are currently “in limbo” on the issues surrounding the implementation of EO 62.

“Everyone is watching us, even other countries,” Sadicon said in a recent hearing of the Senate committee on agriculture, food and agrarian reform.

Agriculture Assistant Secretary and spokesman Arnel de Mesa said a TRO on the EO 62 could cause “delays” in the rice imports being undertaken by the private sector.

Any delays in the importation could impact the country’s rice stocks, De Mesa added.

De Mesa noted that the TRO would create a ripple effect forcing rice imports to a wait-and-see attitude when it is the right time to bring in the rice stocks.

“That is where the hesitation comes in,” he said in a recent press briefing.