Philippines may import rice this year

The government might have to import rice as the dry spell caused by the El Niño phenomenon reduced domestic rice production by about 10 percent in the first half of the year, the Department of Agriculture (DA) said Monday. Agriculture Secretary Proceso Alcala said 6.6-million metric tons of rice were produced in the first half of 2010 compared to the 7.3-million MT produced in the same period last year. The country may have to import rice this year due to the dismal rice output, he said. “We are studying this thoroughly, maybe the output of the first semester of 2011 will cover the decline. Within the next 10 days, we will make a decision on whether we need to import,” Alcala said in a press briefing Monday. According to DA officials, the drought delayed the planting of rice in the provinces, which led to the production slump. With the losses in the first semester of 2010, Alcala said it would be impossible to reach the rice production target of 17.4-million MT for this year. “For sure, we won’t be able to meet (it),” he said. But should the DA call for rice imports, it would have to be just half of the 2010 imports, Alcala said. “The projection is that by 2013, we will be sufficient. We might still import in 2011 and 2012, but it won’t be as much as in 2010,” he said. The Philippines—already the world’s top rice importer, has bought as much as 2.47-million MT of the commodity to fill its requirements for 2010. The importation of rice by the Arroyo administration in the past few years was criticized recently by some Aquino government officials who said it was a scam and a source of corruption. Much of the imported rice has been found undistributed in National Food Authority (NFA) warehouses. To address the glut in imported rice, NFA chief Lito Banayo said early this month the country would not issue tenders for the rest of the year. According to DA statistics, total agricultural production contracted by 2.59 percent, a disappointing result compared to 2009’s 1.49-percent growth. Of the four agricultural sectors—the other three are livestock, poultry and fisheries—the DA said the crops sector suffered the steepest decline at 6.72 percent. In its semester report, the DA said palay production was down by 10.24 percent, while corn declined by 24.59 percent.