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Rice News 17may2022
Rice News 17may2022
1 minute read
An onion plantation is seen in Samalayuca, on the outskirts of Ciudad Juarez, Mexico
April 26, 2018. Picture taken April 26, 2018. REUTERS/Jose Luis Gonzalez
Consumer prices rose 7.68% in the year through April and in the month alone
increased 0.54%, according to non-seasonally adjusted figures posted by the
national statistics agency. read more
"We have to produce (organic fertilizer), because it is very good in theory and
what is natural is also the best, but we need to increase production," Lopez
Obrador said at an event for the promotion of the government's campaign to
increase production of basic foods.
https://www.reuters.com/world/americas/
mexico-boost-fertilizer-production-support-
local-farmers-2022-05-16/Mexico to Suspend
Import Duties on Food Staples to Tackle
Inflation
By Reuters
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FILE PHOTO: Customers buy tomatoes at a street market, in Mexico City, Mexico
December 17, 2021. REUTERS/Luis CortesREUTERS
MEXICO CITY (Reuters) - Mexico will waive import duties for one year on a range
of household staples, most of them foodstuffs, in a bid to curb inflation, the
government said on Monday.
The government unveiled the plan in its official gazette after earlier this month
agreeing with businesses to increase production of staples such as corn, rice and beans
to control inflation, which is at an over two-decade high.
The products on the government import list included corn oil, rice, tuna, pork,
chicken, beef, onions, jalapeño peppers, beans, corn flour, wheat flour, eggs,
tomatoes, milk, lemons, white corn, apples, oranges, wheat and carrots.
Bread, potatoes, pasta for soup, sardines, sorghum and hand soap were also listed in
the government decree. Duties would also be suspended on imports of live cattle, pigs,
sheep, goats and chickens, it said.
Banco Base economist Gabriela Siller said the impact of the measures on inflation
would likely be modest, because the items exempted amounted to about 11.4% of the
consumer price index. It would, however, increase pressure on public finances, she
said.
The government said the waiver on the household staples would take effect from
Tuesday and be in force for a year. The waiver on livestock would enter force pending
the approval of Mexico's foreign trade commission, it added.
(Reporting by Dave Graham in Mexico City; Editing by Jason Neely and Matthew
Lewis)
.....
A total of 1.75 million tons of rice were imported into Iran during the last
fiscal year (March 2021-22), which is a 10-year record high, according to the
secretary of Iran Rice Association.
“Last year’s imports were more than twice the volume needed to fill in the
domestic production deficiency,” Jamil Alizadeh Shayeq was also quoted as
saying by Mehr News Agency.
Iran’s annual rice production currently stands close to 2.3 million tons, while
domestic demand is around 3 million tons per year.
“Misleading information coming from officials about last year’s local production
has led to this excessive volume of imports. Last year, production amounted to
2.25 million tons, which was 200,000 tons less than the year before but not
much different from our normal annual output. In the fiscal 2020-21, high
precipitation levels and favorable weather made production see an unexpected
rise,” he said.
https://financialtribune.com/articles/domestic-economy/113516/rice-imports-at-record-high
A worker at a rice mill in Iraq's central province of Najaf, where water shortages mean a drastic
reduction in the amount that can be cultivated.
Drought is threatening the Iraqi tradition of growing amber rice, the aromatic basis of
rich lamb and other dishes, and a key element in a struggling economy.
The long-grained variety of rice takes its name from its distinctive scent, which is similar
to that of amber resin. It is used in Iraqi meals including sumptuous lamb qouzi, mansaf
and stuffed vegetables.
But after three years of drought and declining rainfall, Iraq's amber rice production will
be only symbolic in 2022, forcing consumers to seek out imported varieties and leaving
farmers pondering their future.
"We live off this land," Abu Rassul says, standing near a small canal that in normal
times irrigates his two hectares (five acres) near Al-Abassiya village in the central
province of Najaf.
"Since I was a child I have planted amber rice," says the farmer in his 70s, his face
wrinkled and unshaven, dressed in a dazzling white dishdasha robe.
Normally, rice fields planted in mid-May should stay submerged all summer until
October—but that's a luxury Iraq can no longer allow.
The country's available water reserves "are well below our critical level of 18 billion
cubic metres (4.8 trillion gallons)", Shaker Fayez Kadhim, Najaf's water resources
manager, told AFP.
Abu Rassul has planted amber rice since he was a child, but drought leaves him and other rice
farmers with an uncertain future.
Rice drains between 10 and 12 billion cubic metres during its cultivation period of about
five months, so it is "difficult to grow rice in Najaf or other provinces because of the high
level of water it needs", Kadhim said.
Previously, more than 70 percent of the amber crop was grown in Diwaniyah and
neighbouring Najaf provinces.
In early May, officials limited total rice crop areas to 1,000 hectares (2,471 acres), in
Najaf and Diwaniyah only, according to the agriculture ministry.
Water shortages have also led to reduced quotas for wheat farmers.
The country's annual rice production had been 300,000 tonnes (tons), according to
Mohammed Chasseb, a senior official in the ministry's planning department.
Iraq is known in Arabic as the "country of the two rivers"—the Tigris and the Euphrates.
But despite those two legendary water sources, the supply of water has been declining
for years and the country is classified as one of five most vulnerable to climate change
effects and desertification.
The consequences are dire: depleted rivers, more intense sandstorms, declining crop
yields—all of which add to the multiple challenges the country faces after decades of
war and insurgency.
Amber rice is named for its distinctive scent similar to that of amber resin.
Kadhim says the Euphrates has dropped to about one-third of its normal level. He wants
"political action" to get more water flowing.
Ahmed Hassoun, 51, president of the Najaf farmers' association, fears the worst.
"There is a risk of seeing rice cultivation disappear for lack of water," he said, blaming
authorities.
"We know Iraq will have a shortage of rain in the coming years," said Hassoun, an
agricultural engineer. Despite that, nothing has been done to "modernise the irrigation
system", he complains.
But agriculture is not the only sector where the infrastructure needs upgrading in a
country grappling with corruption and a financial crisis after decades of war.
Hassoun lamented that Iraq has become "a market for all its neighbours", a reference to
the deluge of Iranian and Turkish agricultural product imports.
A farmer fetches water from a drying and polluted stream in Najaf province -- Iraq is classified
as one of five most vulnerable to climate change effects.
Last year, Iraq's own agricultural sector contracted by 17.5 percent "following severe
droughts, energy outages, and the rising global price of inputs", according to the World
Bank.
That is significant in a country highly dependent on oil income but that wants to diversify
its economy.
"We want the state to take an interest in farmers," says Jassem Zaher, who is in his 60s
and also exclusively farms amber rice.
3 minute read
Workers remove dust from wheat at a wholesale grain market in Chandigarh, India April
17, 2017. REUTERS/Ajay Verma - RC1E6E7C8DF0
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The wheat shortfall shifts the world’s food focus onto rice, a common
substitute for wheat. India remains the world’s top seller with 40% global
export share this year, per forecasts from the USDA. Back in 2007 and 2008,
export restrictions from India and Vietnam exacerbated a shortage, leading to
food riots across Asia and Africa. Food-price rises continued for years and
eventually spilled into the Arab Spring movement in Egypt and beyond.
Overall food and beverage inflation in Egypt, a major wheat importer, was
26% year-on-year in April, higher than back in 2011.
The All Rice Price Index, compiled by the Food and Agriculture Organization
of the United Nations, remained below levels a year earlier as of April, though
it is creeping up. Thanks to controversial subsidies assuring farmers a
minimum selling price, India is likely to have enough grains to feed itself; a
healthy monsoon season will be critical to global supplies. For now, India’s
food stocks still spare political leaders elsewhere from even worse problems.
Follow @ugalani on Twitter
(The author is a Reuters Breakingviews columnist. The opinions expressed
are their own.)
CONTEXT NEWS
- India banned wheat exports on May 14 days after saying it was targeting
record shipments this year, as a scorching heat wave curtailed output and
domestic prices hit a record high.
- The government said it would still allow exports backed by already issued
letters of credit and to countries that request supplies "to meet their food
security needs".
- The move to ban overseas shipments was not in perpetuity and could be
revised, senior government officials told a press conference.
By
Jayashree Bhosale
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Synopsis
The food ministry is trying to ensure there is enough supply in the domestic market at reasonable prices
without disturbing exports
Local prices of wheat and atta have risen sharply as India has stepped
up exports of the cereal following a nearly 40% rally in global rates in
the wake of the Russia-Ukraine conflict.
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Measures Ahead
Indian traders have contracted for export of 4.5 mt of wheat till June,
while actual exports in April were 1.4 mt.
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7 COMMENTS ON THIS STORY
User Pal2 days ago
Why millets are not being given their due place in our food production plans?
This is the time to offer Millets FREE to ALL thru PDS and even thru ITC to supermarkets.
Make Bajra and Ragi Roti's popular as it will solve the malnutrition of Indians as Ragi is what
we need as it has much higher nutrition and is drought resistant using least water besides its
straw is excellent cattle feed !! If people as for bread ask them to eat Ragi Roti......
What happened suddenly to the dream of world food supplier? Why not get rid of bluffing
and making life miserable for Indian people?
https://economictimes.indiatimes.com/news/economy/agriculture/govt-weighs-wheat-export-cap-
more-rice-in-food-scheme/articleshow/91553109.cms
The Centre has always supported procurement operations in all States including Telangana. (Ramesh
Pathania/Mint)1 min read . Updated: 14 May 2022, 04:26 PM ISTLivemint
The Centre earlier had approved a procurement estimate of 40.20 LMT of rice in Telangana during
KMS 2021-22 (Rabi Crop) with a procurement period up to June 2022 and milling period up to
September 2022
Telangana State government receives a thumbs up from the Centre to deposit a total of
6.05 LMT of fortified parboiled rice with FCI, out of the remaining paddy of KMS
2020-21(Rabi crop) and paddy of KMS 2021-22.
As per the Ministry of Consumer Affairs, Food & Public Distribution, the original
milling/ delivery of Customed Milled Rice (CMR) period of KMS 2020-21 (Rabi) in
Telangana was up to September 2021. At the request of the Telangana state
government, this has been extended seventh time up to May 2022 vide GoI letter
dated May 5, 2022.
The Centre earlier had approved a procurement estimate of 40.20 LMT of rice in
Telangana during KMS 2021-22 (Rabi Crop) with a procurement period up to June
2022 and milling period up to September 2022.
The ministry highlighted that the Centre has always supported procurement operations
in all States including Telangana.
As compared to 15.79 LMT of rice procured during KMS 2015-16 benefitting
5,35,007 farmers with an MSP value of ₹3,417.15 crore - 94.53 LMT of rice was
procured in Telangana during KMS 2020-21 benefitting 21,64,354 farmers with MSP
value of ₹26,637.39 crore.
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PREMIUM
Himachal Pradesh: Direct bus service from Delhi to Leh via Ke...
As of May 5, 2022, in the ongoing KMS 2021-22, 72.71 LMT of paddy (48.72 LMT
of equivalent rice) has been procured benefitting 11,14,833 farmers with an MSP
value of ₹14251.59 crore.
https://www.livemint.com/news/india/centre-allows-telangana-to-deposit-6-05-lmt-of-fortified-
parboiled-rice-with-fci-11652524882266.html
Location: India, Telangana, Hyderabad
https://www.deccanchronicle.com/nation/in-other-news/140522/mills-in-telangana-prepare-for-
fortified-rice.html
Rising domestic rice prices
unsettle Thai exporters
PUBLISHED : 16 MAY 2022 AT 07:00
NEWSPAPER SECTION: BUSINESS
WRITER: PHUSADEE ARUNMAS
1
12
The rise in domestic rice prices has outpaced that of export prices, as
free-on-board prices of white rice have increased by 15% from US$400
per tonne in the same period to $460 per tonne.
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"More expensive Thai rice may prompt importers to have a wait and see
approach in buying more Thai rice in the second quarter, possibly
leading Thailand to lose an export opportunity," Mr Chookiat said.
"The surging domestic price has been driven largely by huge demand
from Iraq, which has starting buying Thai rice again after halting its
imports for many years."
Thailand has exported more than 200,000 tonnes of rice to Iraq since
the beginning of this year, with the association expecting the Middle
Eastern country to buy at least 400,000 tonnes in 2022.
In the first quarter, Thai rice exports reached 1.74 million tonnes worth
29.5 billion baht, up by 48.5% and 30.8% respectively compared with the
same period last year. The gains were attributed to strong demand and a
weak baht, which made Thai rice prices more competitive.
Thailand shipped 6.11 million tonnes of rice last year, up 6.68% from
5.73 million tonnes in 2020, with exports valued at 108 billion baht,
down by 7.14% from 116 billion in 2020. The shipments comprised 2.35
million tonnes of white rice (up 18.9%), 1.4 million tonnes of Thai hom
mali rice (down 1.7%), 1.4 million tonnes of parboiled rice (up 1.6%),
550,574 tonnes of aromatic rice (down 4.1%), and 310,878 tonnes of
glutinous rice (up 12.4%).
Read More
1
12
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Desperate for change
https://www.bangkokpost.com/business/2310562/rising-domestic-rice-prices-unsettle-thai-exporters
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The Australian Government is supporting quality rice seeds through the Quality
Declared Seed (QDS) system under the Cambodia-Australia Agricultural Value Chain
Programme (CAVAC), according to the Australian Embassy in Cambodia.
In the recent handover ceremony of QDS products in Kampong Svay District,
Kampong Thom with Veng Sakhon, Minister of Agriculture, Forestry and Fisheries,
Amber Cernovs, First Secretary of the Australian Embassy in Cambodia, said
Australia has been supporting quality rice seeds since the 1980s. “The QDS system
supports Cambodia’s own initiative for a comprehensive seed certification system,”
she added.
For his part, Minister Sakhon thanked the Government of Australia through the
CAVAC programme and the Government of Japan through JICA for their material,
technical and financial support for the implementation of QDS project. It is hoped that
the project will be strengthened and expanded nationwide, based on the highest
quality assurance of all varieties.
Under the QDS, farmers have access to a special labelling system certifying the
quality of their rice seeds, the embassy said.
https://www.khmertimeskh.com/501076373/australia-strengthens-rice-seed-quality-in-cambodia/
Building a national brand
for rice
By Ho Nguyen Thao
2 days ago
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A farmer is seen working on a rice field in the Mekong Delta region - PHOTO: TRUNG
CHANH
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At wet markets, consumers can find varieties of rice stored in bowls and baskets from
age-old brands such as Nang Thom Cho Dao, Huong Lai, Tai Nguyen and Bong Su. In
supermarkets, as well, it’s not hard to find new rice brands packaged in plastic bags
weighing up to 25 kilos. However, there is still no rice brand that is popular in traditional
markets and modern supermarkets.
After more than 30 years of reforms, Vietnam has become one of the three largest rice
exporting countries worldwide, with an annual average of six million tons. However,
even the phenomenal ST25 – “World’s Best Rice 2019” – is struggling to maintain its
position in the international market.
At a conference on sustainable rice production held in Dong Thap Province on April 12,
Truong Sy Ba, chairman of Tan Long Group JSC, proposed a scheme to develop rice
production chain linkages and national rice brand-building for A-An. The scheme also
aims to build factories, warehouses and a modern transportation network.
Tan Long hopes to produce “Vietnamese rice for Vietnamese”. According to Ba, the total
rice consumed domestically is approximately 11 million tons per annum. Of this,
packaged rice with clear origin and a well-defined brand strategy accounts for only 10-
15%, some 1-1.7 million tons. Tan Long’s target is to achieve 10% of this.
Tan Long is determined to sell some 300,000 tons of packaged A-An rice until 2025 and
600,000-700,000 tons until 2030, accounting for 30% of the domestic rice market. Its
bigger ambition is one million tons.
“To achieve the goal, it is crucial for us to thoroughly prepare and heavily invest in
infrastructure. Apart from reselecting and restructuring our strategic material areas, we
are upgrading scales and technology in our processing factories to increase the drying
and storing capacity,” said Ba.
In Long Xuyen last February, Tan Long signed a consent form with An Giang and Kien
Giang provinces to construct a 60,000-hectare raw material rice area. A month prior to
the event, Tan Long inaugurated Hanh Phuc, a rice factory in An Giang Province, which,
according to the Group, has the largest scale in Asia. The factory can produce 1,000
tons of finished products daily.
Hanh Phuc is located next to the 300,000-hectare raw material rice area in An Giang’s
Tri Ton and Thoai Son districts and Kien Giang’s Giang Thanh, Hon Dat and Kien Luong
districts. The advantage of having a material area is the lower cost of transportation
from fields to factories.
Moreover, rice which is dried and stored instantly after being harvested (under 10
hours) has an outstanding quality and also retains its original fragrance and taste.
By the end of 2016, Tan Long repeatedly won another bid to export 3.000 tons of
Japonica rice to Korea. To penetrate the Korean market, Tan Long’s rice must meet 280
inspection criteria. At the start of 2017, Tan Long exported the next batch of Japonica
rice, which is 10 times more than the first batch, bringing Tan Long US$3 million in
profit. The next year, Tan Long won another batch of 60.000 tons.
Tan Long’s exports to Korea have reminded people of the “Vietnamese rice brand by
2020, with a vision to 2030” scheme. This national scheme was approved in 2015, with
rice being the first agricultural product to adopt this approach. Shortly after that, rice
brands sprung up everywhere.
The Vietnam Southern Food Corporation (Vinafood 2) is a leader in the field, with
warehouses from Danang to Ca Mau. The average output was 3 million tons during
2010-2020. Vinafood 2’s subsidiaries have strategic plans for trademark and brand
identity. For instance, Mecofood registered “Tho Com” for Nang Thom Long An, Huong
Lai KDM 105, Tai Nguyen Cho Dao. Long An Food Company registered “lady in blue ao
dai with cone hat” for nearly 10 brands: ST24, Nang Hoa, Viet Dai, Viet My, Huong Lai
KDM, Tai Nguyen, etc. Song Hau Food Company registered green/yellow/red/dark red
pomelo flowers, purple/red/orange/yellow poinsettias, Bong Su, Gao thom Song Hau,
Tay Do. Besides, Ho Chi Minh City Food Company has Dong Xanh, Hat Ngoc, and Huong
Lua Dong Thap Food Company registered Huong Tram, Seu Do and Ramsar, among
others.
However, most of the brands mentioned above are almost unfamiliar to domestic
consumers. For familiar brands such as Hoa Su, Bong Su, Nang Thom Cho Dao, Huong
Lai, and Tai Nguyen, branding is unnecessary. Good wine needs no bush. The
enterprises that own the brands remain unknown to the market.
In Vietnam, there are more than 200 medium-scale and large-scale enterprises joining
the rice markets. However, their brand strategy is not effective, especially in export
markets.
Farmers, enterprises still struggle
It is tough for businesses to do the branding. To have a national rice brand that can
draw the attention of Asian customers worldwide sounds more far-fetched. Vietnam’s
agriculture needs some big brands, especially in cultivating, processing and exporting.
While there are a variety of rice seeds, there are not many major and premium rice
seeds which can become key products and successfully enter global markets.
Little do we know that the age-old specialty, Nang Thom Cho Dao, was once presented
to King Minh Mang (1791-1841). This variety degenerated due to the lack of alluvial
and salinity and overuse of chemical fertilizers in soil. By the end of 2016, Can Tho
University conducted a research project and restored this variety of rice at My Le
Commune, Can Duoc District, Long An Province. According to local farmers, Nang Thom
Cho Dao had restored its original flavor.
In recent years, groups such as Loc Troi and Trung An have stood out in the market
with impressive rice export news. Both are trying to build their own brands, but still
struggle to make them popular.
In 2019, ST25 rice developed by engineer Ho Quang Cua was honored as the “World’s
Best Rice”. Unfortunately, the name ST25 was applied for registration as a trademark
by four companies in California, the United States, and one company in Australia, while
Cua did not have time to do so. ST25 repeated the same old mistake of Nang Thom Cho
Dao. In 2002, this trademark was registered by Cong Nguyen Inc. in Oklahoma, the
United States. Long An Province’s Department of Science and Technology hired a U.S.
law firm to handle the case, but did not succeed.
Without effective brand protection strategies, Vietnam will never be able to own a
global rice brand as top rice exporters as India, Thailand and Cambodia have done.
Vietnam’s enterprises need to raise awareness and have the ability to protect their
brands. However, the State’s support is crucial. In the domestic market, the fraudulent
use of brands such as Nang Thom Cho Dao and ST25 by rice traders often confuse
consumers between real and fake rice varieties and cause losses to farmers
https://english.thesaigontimes.vn/building-a-national-brand-for-rice/
48
The Philippines could retain its status as the world’s second largest buyer of rice for the
fourth consecutive year in 2023, when total import volume is projected to reach 3 million
metric tons (MMT).
In its monthly global grain report, the United States Department of Agriculture (USDA)
said the Philippines’s rice imports this year and next year would hit the 3-MMT level.
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This is the first trade projection made by the USDA for calendar year 2023. The agency
said China, which is expected to purchase 6 MMT, will remain as the world’s top buyer
of rice.
The international agency said it expects local rice production in the Philippines to stay
flat next year and this will provide opportunities for higher imports to meet the growing
demand for the staple.
“Flat production and ample stocks keep imports steady even as consumption grows,”
the USDA said in its report released recently.
The USDA projected that the Philippines’s rice output next year would slightly decline to
12.411 MMT from a projected record of 12.474 MMT this year.
The country’s total rice production this year would be 58,000 MT higher than the 12.416
MMT recorded output last year, based on USDA data.
The USDA said the Philippines’s total rice consumption would increase as consumers
shift to the staple from more expensive wheat-based products, which are affected by the
spike in raw material prices due to Russia’s invasion of Ukraine.
USDA data showed that the country’s total rice consumption next year would expand by
150,000 metric tons (MT) to 15.35 MMT from an estimated total requirement of 15.2
MMT this year. Likewise, the USDA projected that total rice consumption of the
Philippines this year would be 5 percent higher than last year’s 14.45 MMT.
The country’s rice imports in the first quarter surged by almost 70 percent year-on-year
to 985,139.995 MT as importers brought in more staple food in anticipation of tighter
world supply and lower domestic output.
Latest Bureau of Plant Industry (BPI) data showed that rice imports during the January-
to-March period were 404,057.065 MT higher than the 581,082.93 MT recorded last
year.
Historical BPI data showed that the 985,139.995 MT of rice imports from January to
March is the highest first-quarter import volume recorded by the country since the
implementation of rice trade liberalization law in 2019.
Agriculture Undersecretary for Policy, Planning and Research Fermin D. Adriano cited
two possible reasons for the rise in imports: the importers’ expectation of tighter global
staple supply and the projected lower domestic rice output.
Adriano said some wheat-eating countries in Sub-Saharan Africa and Middle East are
projected to shift to rice due to global supply problems caused by the Ukraine-Russia
war.
He also said the expected decline in local palay production due to the reduction in
fertilizer use had prompted importers to bring in more rice from abroad.
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An industry group told the BusinessMirror earlier that the election season had
contributed to the need for more rice imports given the demand for low-cost rice.
“The election campaigns and relief operations, however, created the demand for low-
priced rice in the market that can be supplied by some countries like Myanmar,”
multisector industry group Philippine Rice Industry Stakeholders Movement (Prism)
said.
The group said the current government “can ill afford” a repeat of the 2018 rice price
crisis when prices of palay and milled rice skyrocketed and caused inflation to
accelerate.
“Panic buying and long queuing for rice can be disastrous for public image during
election.”
https://businessmirror.com.ph/2022/05/16/phl-to-import-more-rice-as-output-to-stay-flat/
Business, Business News
The Department of Finance (DOF) has defended the implementation of the rice tariffication
law (RTL), which allows unrestricted importation of rice at 35 percent tariff, as presumptive
president Ferdinand “Bongbong” R. Marcos Jr. is poised to suspend the three-year law
enacted by outgoing President Duterte.
Finance Secretary Carlos G. Dominguez III said on Sunday, May 15, that the rice
liberalization under the RTL has lowered the price of staple food for 100 million Filipino
consumers as well as provided billions of pesos in funds to the agriculture sector.
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For consumers alone, Dominguez said the RTL brought down rice prices to the current
average of P39 per kilo, or a reduction of about P7 per kilo from a peak of around P46 prior
the law’s enactment in 2018.
President Duterte signed the RTL into law on Feb. 14, 2019 as Republic Act (RA) No.
11203. The law, which later took effect on March 5, 2019, replaced rice import quantitative
restrictions with tariffs.
Marcos, apparent winner of the presidential race, on the other hand, said that he would favor
the suspension of the rice tariffication law if elected. He also made a campaign promise to
bring down the retail prices of rice to P20 to P30 per kilo.
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Rice food is now more affordable, especially for low-income Filipinos who spend about 16
percent of their total household budget on the staple food because of the RTL, Dominguez
pointed out.
He added that RTL also freed the rice industry from local entrenched interests that took
advantage of the protectionist policy on rice for decades.
“The Rice Tariffication Law was finally achieved after more than 30-years of failed
attempts under previous administrations. The law opened up the Philippine rice market and,
in turn, reduced the price of our country’s staple food for more than 100 million Filipinos,”
Dominguez said.
As a result of the reform, which he first proposed three decades ago when he was
Agriculture Secretary of then President Corazon C. Aquino, rice is no longer a main
contributor to inflation, Dominguez said.
“It took the strong political will of the President for rice tariffication to finally happen for
the benefit of our consumers,” the finance chief added.
With rice made affordable through the RTL, the National Economic and Development
Authority (NEDA) estimates that three years from now, the proportion of malnourished
children and population at risk of hunger in the country would be reduced by 2.8 percent
and 15.4 percent, respectively.
These estimates are equivalent to around 2.1 million less people at risk of hunger and
malnutrition, the NEDA said.
In 2018 before the RTL took effect, the retail price of regular-milled rice (RMR) spiked to
P46.04 per kg. After RTL, the average price of this rice variety went down to P39.13 as of
April 2022, or cheaper by P6.91 per kg.
Another key benefit of RTL is the flow of billions of pesos in funds to the agriculture sector
through the creation of the P10-billion Rice Competitiveness Enhancement Fund (RCEF).
The fund is used exclusively to finance programs that will sharpen the competitiveness of
palay growers by way of providing them with easy access to fertilizer, farm machinery and
equipment, high-yield seeds and cheap credit; and offering them skills training programs on
farm mechanization and modern farming techniques.
https://mb.com.ph/2022/05/15/dominguez-defends-rice-tariffication-law/
The Department of Finance (DOF) has defended the implementation of the rice tariffication
law (RTL), which allows unrestricted importation of rice at 35 percent tariff, as presumptive
president Ferdinand “Bongbong” R. Marcos Jr. is poised to suspend the three-year law
enacted by outgoing President Duterte.
Finance Secretary Carlos G. Dominguez III said on Sunday, May 15, that the rice
liberalization under the RTL has lowered the price of staple food for 100 million Filipino
consumers as well as provided billions of pesos in funds to the agriculture sector.
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For consumers alone, Dominguez said the RTL brought down rice prices to the current
average of P39 per kilo, or a reduction of about P7 per kilo from a peak of around P46 prior
the law’s enactment in 2018.
President Duterte signed the RTL into law on Feb. 14, 2019 as Republic Act (RA) No.
11203. The law, which later took effect on March 5, 2019, replaced rice import quantitative
restrictions with tariffs.
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Marcos, apparent winner of the presidential race, on the other hand, said that he would favor
the suspension of the rice tariffication law if elected. He also made a campaign promise to
bring down the retail prices of rice to P20 to P30 per kilo.
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Rice food is now more affordable, especially for low-income Filipinos who spend about 16
percent of their total household budget on the staple food because of the RTL, Dominguez
pointed out.
He added that RTL also freed the rice industry from local entrenched interests that took
advantage of the protectionist policy on rice for decades.
“The Rice Tariffication Law was finally achieved after more than 30-years of failed
attempts under previous administrations. The law opened up the Philippine rice market and,
in turn, reduced the price of our country’s staple food for more than 100 million Filipinos,”
Dominguez said.
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As a result of the reform, which he first proposed three decades ago when he was
Agriculture Secretary of then President Corazon C. Aquino, rice is no longer a main
contributor to inflation, Dominguez said.
“It took the strong political will of the President for rice tariffication to finally happen for
the benefit of our consumers,” the finance chief added.
With rice made affordable through the RTL, the National Economic and Development
Authority (NEDA) estimates that three years from now, the proportion of malnourished
children and population at risk of hunger in the country would be reduced by 2.8 percent
and 15.4 percent, respectively.
These estimates are equivalent to around 2.1 million less people at risk of hunger and
malnutrition, the NEDA said.
In 2018 before the RTL took effect, the retail price of regular-milled rice (RMR) spiked to
P46.04 per kg. After RTL, the average price of this rice variety went down to P39.13 as of
April 2022, or cheaper by P6.91 per kg.
Another key benefit of RTL is the flow of billions of pesos in funds to the agriculture sector
through the creation of the P10-billion Rice Competitiveness Enhancement Fund (RCEF).
The fund is used exclusively to finance programs that will sharpen the competitiveness of
palay growers by way of providing them with easy access to fertilizer, farm machinery and
equipment, high-yield seeds and cheap credit; and offering them skills training programs on
farm mechanization and modern farming techniques.
Under the RTL, all import duties collected from rice imports beginning March 5, 2019 go to
the RCEF and other agriculture modernization programs.
In the first four months of 2022 alone, the Bureau of Customs already collected P6.6 billion
in duties from rice imports, which is already two-thirds of the P10 billion earmarked
annually for RCEF.
The National Food Authority (NFA) monopolized rice importations before the RTL, with a
few private traders granted import permits that enabled them to control the price and supply
of rice through hoarding and other manipulative practices.
With RTL, the role of the NFA has been limited to ensuring emergency rice stocks
exclusively procured from local palay growers.
Dominguez said that with rice tariffication, the government was able to handle the Covid-19
crisis “with strength on the food security front.”
He pointed out that despite logistical restrictions resulting from the mobility restrictions or
lockdowns imposed nationwide to protect people and communities from the pandemic, the
government was able to sustain the flow of produce from local farms to Filipino consumers.
The agriculture sector was “one of the brightest spots” of the Philippines’ response to the
pandemic owing in large part to the RTL, Dominguez said.
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industry situation are now publicly accessible in the Rice Data Analytics (RiceLytics)
“RiceLytics is a public rice data analytics that aims to aid decision and policy-making
The website presents data on rice area, production, yield per hectare, characteristics
of rice farmers, farming methods and technologies used by Filipino farmers, and
Before the development of the RiceLytics website, such data were released through
Atty. Rhaegee Tamana, Sen. Cynthia Villar’s chief of staff, said that the dashboard is
“I am happy that RiceLytics is now available for us to know the situation of PH rice
industry. This will help us improve and make our programs under RCEF responsive,”
Tamana said.
The project is funded by the DOST – Philippine Council for Industry, Energy, and
Philrice
https://mb.com.ph/2022/05/15/dominguez-defends-rice-tariffication-law/