Rice Harvest Loss May Mount in Philippines on Typhoon

Rice losses in the Philippines, the world’s biggest importer, may increase as more than 1 million metric tons of the crop has yet to be harvested in areas in the path of a typhoon, a government official said.

Production loss may jump from more than 800,000 tons last week, Agriculture Undersecretary Emmanuel Paras said in a phone interview from Manila today. Fourth-quarter harvests make up 37 percent of annual output, according to the Bureau of Agricultural Statistics.

Typhoon Lupit was forecast by the Philippine weather bureau to bring rains in northern and central Luzon, the biggest rice- growing regions, which contribute 30 percent the nation’s output. The storm was 350 kilometers east-northeast of the Aparri town on the northern tip of Luzon at 4 a.m. local time.

Severe losses from storm damage may prompt the Philippines to raise its rice imports next year to more than the estimated 2 million tons, likely boosting global prices. Rice futures jumped to a record last year, as the nation lifted purchases and some exporters curbed shipments on concern there may be a shortage.

“Governments will scramble to try to contain the rising rice prices again,” as supplies tightens and higher oil prices push up prices of commodities, Frederic Neumman, an economist at HSBC Holdings Plc in Hong Kong, said by phone today.

January-delivery rice gained 0.5 percent to $13.93 per 100 pounds in after-hours trading in Chicago at 4:04 p.m. Singapore time, reversing an earlier loss of 0.7 percent. In comparison, wheat dropped 1.2 percent and corn lost 1 percent.

Record Imports

Royal Bank of Scotland Plc. economist Euben Paracuelles forecast last week that the nation’s rice imports “could approach 2008 levels.” The government and the private sector imported a record 2.4 million tons last year, National Food Authority spokesman Rex Estoperez said yesterday.

Futures advanced as much as 2.8 percent on Oct. 14 after Agriculture Secretary Arthur Yap said the nation may add a second tender for the staple by end of the year, on top of the 250,000 tons the government is seeking to buy, to meet a shortfall. National Food Authority Deputy Administrator Vic Jarina said Oct. 19 a series of tenders may be held by yearend.

Without storm damage, the Philippines typically has a production deficit of about 10 percent of its annual demand, Estoperez said.

Lupit’s forward movement, to the west-southwest, has slowed in the past two days and Lupit’s eye is expected to make landfall in northern Luzon after 2 a.m. on Oct. 25, according to the agency’s forecast.