Rice imports expected to increase in Philippines and Indonesia

31-Jul-2024 04:28 PM

Singapore. The Philippines and Indonesia, the two top rice importing countries in South-East Asia, are likely to increase the import of this important food grain due to weak domestic production and increased demand and consumption.

Thailand's Department of Foreign Trade has estimated rice imports to increase to 47 lakh tonnes in the Philippines and between 36 to 43 lakh tonnes in Indonesia during the current year, saying that Thailand may get a good opportunity to increase rice exports.

The Philippines government has reduced the import duty on rice from 35 percent to 15 percent, which will come into effect from next month i.e. August 2024 and will remain effective till the year 2028. This will especially provide great relief to Thailand and Vietnam.

But India will not benefit because there is a ban on the export of general category white rice from here, whereas mainly rice of this category is imported in the Philippines.

After the end of the El Niño weather cycle, Thailand has received good rainfall, due to which the production of the next crop of rice is expected to be better than last year.

With the start of harvesting and preparation of the new crop in the last quarter of the current year, the stock of rice in Thailand will start increasing and then the activity of its exporters in its shipment will also increase.

The price of Thailand's rice is decreasing, which is increasing its competitiveness.

If the Indian government decides to end or relax the ban on the export of white rice, then the difficulties of the exporters of Thailand and Vietnam may increase because generally Indian rice is available at the cheapest price.

Currently, rice exporters of Thailand and Vietnam are not facing tough competition in Indonesia, Malaysia, Philippines, Africa and Middle East countries.