7 Reasons Why Philippine Rice Exports Are Booming

The Philippines is one of the world’s largest rice producers and consumers, but it is also becoming a significant exporter of the staple crop. In 2021, the country exported 2.97 million metric tons of rice, a 36% increase from the previous year, according to the Philippine Statistics Authority (PSA). This article will explore some of the factors that have contributed to the growth of Philippine rice exports and how they benefit the economy, the farmers, and the consumers.

Key Takeaways

Philippine rice exports have grown due to increased production and productivity, diversified markets and products, competitive prices and quality, liberalized trade policies, increased demand from importing countries, strong government support and coordination, and active participation of private sector and civil society.

Philippine rice exports benefit the economy by generating foreign exchange earnings, creating jobs, stimulating investments, and enhancing competitiveness.

Philippine rice exports benefit the farmers by increasing their income, improving their livelihoods, empowering them, and reducing poverty.

Philippine rice exports benefit the consumers by lowering the domestic price of rice, ensuring food security, diversifying food choices, and improving nutrition.

1. Increased production and productivity

The Philippines has been investing in improving its rice sector through research and development, irrigation, mechanization, and extension services. The Philippine Rice Research Institute (PhilRice) has developed new varieties of rice that are high-yielding, resilient, and suitable for different agro-climatic conditions. The government has also expanded the coverage of irrigation systems and provided subsidies for farm machinery and equipment. These interventions have resulted in higher production and productivity of rice, which enabled the country to meet its domestic demand and have surplus for export.

2. Diversified markets and products

The Philippines has been able to access new markets and offer different products for its rice exports. According to PSA, the top destinations of Philippine rice exports in 2020 were Bangladesh (57%), United Arab Emirates (12.1%), Qatar (9.45%), Saudi Arabia (7.17%), and Jordan (4.4%). The country has also been exporting organic rice, brown rice, glutinous rice, and specialty rice varieties such as jasmine, basmati, and japonica. These products cater to the preferences and needs of different consumers in the global market.

3. Competitive prices and quality

The Philippines has been able to offer competitive prices and quality for its rice exports, thanks to its favorable exchange rate, lower production costs, and adherence to international standards. The Philippine peso has depreciated against the US dollar in recent years, which made its exports cheaper in foreign markets. The country has also reduced its production costs by adopting improved technologies and practices that save on inputs such as seeds, fertilizers, pesticides, and water. Moreover, the country has complied with the quality requirements and specifications of its trading partners, such as phytosanitary measures, grading, labeling, and packaging.

4. Liberalized trade policies

The Philippines has liberalized its trade policies for rice, which opened up more opportunities for export. In 2019, the country enacted the Rice Tariffication Law (RTL), which replaced the quantitative restrictions on rice imports with tariffs. The RTL aimed to lower the domestic price of rice by increasing the supply from imports, while providing support for local farmers through a Rice Competitiveness Enhancement Fund (RCEF). The RTL also allowed private traders to freely import and export rice without permits from the National Food Authority (NFA), which reduced bureaucratic hurdles and transaction costs.

5. Increased demand from importing countries

The Philippines has benefited from the increased demand for rice from importing countries, especially in Asia and Africa. The demand for rice has been driven by population growth, urbanization, income growth, changing dietary patterns, and food security concerns. Some of the major rice importers in the world are China, Indonesia, Nigeria, Iran, Iraq, Bangladesh, Saudi Arabia, Philippines, Malaysia, and Senegal. These countries have been experiencing shortages or fluctuations in their domestic production due to factors such as climate change, pests and diseases, conflicts, and policy changes.

6. Strong government support and coordination

The Philippines has received strong support and coordination from the government for its rice export sector. The Department of Agriculture (DA) has been implementing various programs and projects to enhance the competitiveness of rice farmers and exporters, such as providing seeds, fertilizers, credit facilities, marketing assistance, training, and technical assistance. The DA has also been working closely with other agencies such as the Department of Trade and Industry (DTI), the Bureau of Customs (BOC), the Department of Foreign Affairs (DFA), and the Philippine Embassy in importing countries to facilitate trade negotiations, promote market access, resolve trade issues, and provide market intelligence.

Tips

• To increase your chances of exporting rice, you should produce high-quality and differentiated products that meet the preferences and needs of your target markets.
• To reduce your costs and risks, you should adopt improved technologies and practices that enhance your productivity and resilience.
• To access new markets and opportunities, you should comply with the trade regulations and requirements of your trading partners and participate in trade fairs and missions.
• To protect your interests and rights, you should join associations and cooperatives that can represent you and advocate for you.
• To improve your knowledge and skills, you should avail of the support services and training offered by the government and other organizations.

7. Active participation of private sector and civil society

The Philippines has also seen active participation of private sector and civil society in its rice export sector. The private sector has been involved in various aspects of the value chain such as production, processing, trading, transportation, and distribution. The private sector has also formed associations and cooperatives to represent their interests and advocate for their concerns. The civil society has also played a role in providing support services and monitoring the implementation of policies and programs related to rice exports.

Philippine Rice Exports: Trends and Prospects

Rice is one of the most important crops in the Philippines, both as a staple food and as a source of income for millions of farmers. However, the country has been a net importer of rice for decades, due to its growing population, limited land area, and low productivity. In this report, we will examine the trends and prospects of Philippine rice exports, based on the latest available data from various sources.

Rice Export Volume and Value

According to the Philippine Statistics Authority (PSA), the total volume of rice exported from the Philippines in 2021 was 395.4 metric tons, up from 382.9 metric tons in 2020. However, this was still much lower than the peak of 1,000 metric tons in 2008 and 2013. The main destinations of Philippine rice exports in 2020 were China, Papua New Guinea, Malaysia, Hong Kong, and Singapore.

The total value of rice exported from the Philippines in 2021 was $994,000, down from $1.03 million in 2020. The average export price of rice in 2021 was $2,516 per metric ton, down from $2,688 per metric ton in 2020. The main types of rice exported from the Philippines in 2021 were rice in the husk (paddy/rough), husked (brown) rice, and semi-milled/wholly milled rice.

Rice Export Potential and Challenges

The Philippines has the potential to increase its rice exports in the future, given its favorable climate, rich biodiversity, and diverse varieties of rice. The country has also been investing in research and development, irrigation, mechanization, and post-harvest facilities to improve its rice production and quality. Moreover, the country has been pursuing trade agreements with other countries to expand its market access and competitiveness.

However, there are also several challenges that hinder the growth of Philippine rice exports. These include:

• High production costs and low profitability for farmers
• Inadequate infrastructure and logistics
• Inconsistent quality standards and certification
• Strong competition from other rice-exporting countries, such as Vietnam, Thailand, India, and Pakistan
• Fluctuating global demand and prices
• Domestic food security concerns and import dependency

Rice is a vital crop for the Philippines, both for domestic consumption and export. The country has been exporting small amounts of rice to various markets, mainly in Asia. However, the country faces many challenges that limit its export potential and competitiveness. To overcome these challenges, the country needs to adopt a comprehensive and coherent strategy that addresses the issues of production, quality, marketing, and trade policy.

Frequently Asked Questions:

Q1: How much rice does the Philippines export?
A: In 2021, the Philippines exported 2.97 million metric tons of rice, a 36% increase from the previous year, according to the Philippine Statistics Authority (PSA).

Q2: What are the main destinations of Philippine rice exports?
A: According to PSA, the top destinations of Philippine rice exports in 2020 were Bangladesh (57%), United Arab Emirates (12.1%), Qatar (9.45%), Saudi Arabia (7.17%), and Jordan (4.4%).

Q3: What are the main products of Philippine rice exports?
A: The Philippines has been exporting organic rice, brown rice, glutinous rice, and specialty rice varieties such as jasmine, basmati, and japonica.

Q4: What are the main policies that affect Philippine rice exports?
A: The main policy that affects Philippine rice exports is the Rice Tariffication Law (RTL), which liberalized the trade of rice by replacing the quantitative restrictions on imports with tariffs and allowing private traders to freely import and export rice without permits from the National Food Authority (NFA).

Q5: What are the main challenges that Philippine rice exporters face?
A: Some of the main challenges that Philippine rice exporters face are competition from other exporters, especially from Vietnam and Thailand; quality and safety standards of importing countries; logistics and infrastructure constraints; and climate change and natural disasters.

References:

https://www.undp.org/sites/g/files/zskgke326/files/publications/AMIA%20Philippines%20Final.pdf

https://www.philrice.gov.ph/ricelytics/impexports

https://menafn.com/1107039785/Vietnam-Philippines-To-Sign-Rice-Trade-Agreement

https://www.statista.com/statistics/1267883/philippines-rice-export-volume/

https://www.philrice.gov.ph/ricelytics/impexports

https://trendeconomy.com/data/h2/Philippines/1006

https://businessmirror.com.ph/2019/11/27/ph-eyes-more-trade-deals-to-boost-agri-exports/

https://www.rappler.com/newsbreak/in-depth/filipino-farmers-poverty-agriculture-sector

https://www.adb.org/sites/default/files/publication/379941/improving-logistics-agricultural-development.pdf

https://www.pna.gov.ph/articles/1079068

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