Over 2,000 sanitary and phytosanitary import clearances (SPS-ICs), representing some 1.9 million metric tons (MMT) of rice, have expired as traders were unable to use the permits beyond the 60-day deadline.
Documents from the Department of Agriculture (DA) obtained by the BusinessMirror showed that in the January-to-May period alone, 2,071 SPS-ICs for 1.879 MMT of rice lapsed.
The Bureau of Plant Industry (BPI) National Plant Quarantine Services Division (NPQSD) confirmed to the BusinessMirror that unused SPS-ICs issued in June and July have expired as well.
An SPS-IC for rice, which certifies that the imported staple is safe for human consumption, lapses after a 60-day must ship-out date and could not be used for future importation, the BPI-NPQSD said.
Agriculture Secretary William D. Dar earlier said about 200,000 metric tons (MT) to 300,000 MT of rice will still enter the country in the fourth quarter, majority of which would arrive by December.
Dar said the DA-BPI has been in talks with rice traders and importers to refrain from importing rice for October and November, when local harvest is in full swing, to prevent palay prices from declining.
In September, the DA-BPI only issued 14 SPS-ICs for 14,463 MT of rice to eligible importers, according to data from the BPI.
The BPI-NPQSD told the BusinessMirror that it did not suspend the issuance of SPS-IC for rice imports and that it was “managing” the schedule of arrival “to prioritize the distribution of local palay/rice.”
“BPI also conducted a series of meetings with rice importers regarding this matter and has received a commitment that the importers will also manage their importations,” the agency said.
From January to October 2, about 1.817 MMT of rice was brought into the country by 190 eligible importers. The bulk of the volume or 1.583 MMT came from Vietnam, BPI data showed.
BPI data also showed that Puregold Price Club Inc was the top rice importer with 65,728.658 MT followed by Davao San Ei Trading Inc. with 64,636 MT.
Aside from Vietnam, traders and importers bought rice from Myanmar, Thailand, China, India, Pakistan, Cambodia, Taiwan, Italy and Spain.
The United States Department of Agriculture (USDA) has pared down its total rice import forecast for the Philippines this year by 100,000 MT to 2.5 MMT due to the “slower pace of issuing import permits.”
Philippine rice imports this year may decline by 13.8 percent from last year’s 2.9 MMT, USDA data showed.
Due to the downward revision, global rice imports are expected to fall slightly to 43.003 MT from last year’s 43.428 MMT, based on USDA’s latest projections.
“Global trade is expected to contract slightly on lower Philippines imports,” it said in its October “Grain: World Markets and Trade” report published recently.
Likewise, the USDA revised downward its rice import forecast for the Philippines next year to 2.6 MMT from a previous projection of 3 MMT due to “higher production forecast.”
With the latest projection, rice imports next year would remain flat but the Philippine would still be the world’s largest importer for the third consecutive year.
The USDA forecasts the country’s milled rice production to reach 11.7 MMT next year, 700,000 MT higher than its previous estimate of 11 MMT.
Despite the upward revision, rice output next year would still be 2 percent lower than this year’s estimated output of 11.927 MMT, USDA data showed.
Image credits: Nonie Reyes
1 comment
HOW THEN CAN ONE EXPLAIN WHY RICE REMAINS AT HIGH PRICES YET IMPORTERS REFUSED TO IMPORT AS EVIDENCED BY THE NON-USE OF SO MANY IMPORT PERMITS?
SHOULD WE THEN CONCLUDE THAT RICE TARIFFICATION IS OF LITTLE BENEFIT TO THE CONSUMERS, AS WAS INTENDED????