The Philippines has imported 1.775 million tons of milled rice this year, including 1.5 million tons bought from Vietnam via a government-to-government deal. In 2008, imports reached a record 2.3 million tons, helping send world prices to record highs.
Government rice stocks, held by the state-run National Food Authority, currently stand at 1.36 million tons, enough for nearly 39 days consumption.
But Manila is continuing efforts to bolster rice supply, and could make pre-emptive imports to meet next year’s shortfall.
Last week, the government said it hoped to soon sign an agreement with Thailand that will see Bangkok giving priority to Manila in the sale of Thai rice.
Vietnam is also reportedly eyeing selling 700,000 tons more of the grain to the Philippines until the end of 2009.
The country’s paddy rice output is forecast to climb 3.7% to 3.59 million tons in the third quarter and by 4% to 6.48 million tons in the last quarter of 2009, normally the bumper crop.
Production in the first half reached 7.38 million tons, up 3.6% from the same period last year.
The latest estimate, based on farmers’ planting intentions, is due to increased cropland and better yield, the Bureau of Agricultural Statistics (BAS) said on its Web site.
Manila is expecting better harvests even though government estimates showed a series of tropical cyclones and typhoons would cut projected production for the third quarter by 1.6%.
Corn output for the year was forecast to rise 2.26% to 7.09 million tons, also aided by increased cropland and yield. Production in January-June dropped 2.3% to 3.29 million tons.
However, planting intentions might drop in the second half given low corn prices, said Roger V. Navarro, president of Philippine Maize Federation, Inc.
"[The government has a forecast] but the problem is that farmers are discouraged from planting," he claimed.
Prices of yellow corn, the main ingredient in animal feeds, averaged P8-9 per kilogram, lower than the P10 per kilo cost of production due to excessive imports of feedwheat, an alternative to yellow corn in feed production.
Planting intentions in October to November will likely be affected by the low prices, Mr. Navarro said. — Reuters with a report from NJCM
