China flooding will not impact
Philippine rice supply
Louise Maureen Simeon (The Philippine Star
August 11, 2020 - 12:00am
MANILA, Philippines — The
Philippines is safe from constraints in its rice supply even as China, the
world’s second largest importer, may raise its purchases after it experienced
the worst flooding in decades which damaged many of its farmlands.
Agriculture Secretary William Dar
assured the public that the country’s rice inventory would be at a comfortable
level this year until early-2021.
“By the end of the year, our outlook
is good to last for three months and that will give us enough buffer and our
local production is also continuous,” Dar told The STAR.
“This year, we are okay, even until
the first half of next year,” he said.
China is currently experiencing its
worst flooding in many decades, destroying thousands of acres of farmland near
the Yangtze River and losing more than 50 percent of the country’s rice
production.
Last year, China emerged as the
world’s second largest rice importer, after the Philippines, with demand of
about 2.5 million metric tons. Now, the worry lies on how much increase will
China import to support its population.
This, according to industry
analysts, could shake world market prices and may not be favorable for other
importing countries like the Philippines.
The Federation of Free Farmers,
however, echoed Dar’s optimism that the Philippines would not be at the losing
end in the short term or at least this year.
“China has many grain reserves. What
they are doing now is releasing those reserves. But since many were hit by the
flood, at some point they would have to replenish and go to the international
market if they won’t be able to recover their local supply,” FFF national
manager Raul Montemayor told The STAR.
“But for the short term, the China
flooding has no immediate impact. I think they are still assessing the
situation, because if they had started to import, prices would have already
shot up. Prices remain stable right now,” he said.
The government continues to rely on
the private sector to continue bringing in rice with imports that already
entered the country now at 1.7 million MT, already close to the two million MT
target.
“Plus, we have directed the National
Food Authority to continue buying from our farmers to add to our buffer
stock,” Dar said, adding that “hopefully, the private sector will also continue
to buy this coming harvest season to ensure that our farmers will have good
prices. “
Add to this is the P8.5 billion Rice
Resiliency Project of the DA which is expected to yield an extra one million MT
and improve the country’s self-sufficiency level to 93 percent.
https://www.philstar.com/business/2020/08/11/2034287/china-flooding-will-not-impact-philippine-rice-supply