Philippines declares food security emergency

The Philippines, the world’s largest importer of rice, has declared a food security emergency, citing soaring rice prices.

According to local media Philippine Star and Reuters on the 4th, the Philippine government announced the day before that it would declare a food security emergency due to an abnormal rise in domestic rice prices.

Philippine Agriculture Minister Francisco Tiu Laurel Jr. said, “In December last year, the prices of general and high-end rice have risen 19% and 20% respectively compared to before the July 2023 surge,” adding, “Food inflation has exceeded the upper target due to unusual rice price increases.”

After the declaration of a state of emergency, the government plans to release stockpiles of rice to induce stabilization of rice prices.

With this measure, the government can sell stockpiled rice to local governments at 36 pesos per kilogram, and local governments can sell it again to the region at 38 pesos per kilogram.

The Ministry of Agriculture said at least 300,000 tons of rice will be released on the market.

The emergency is reviewed every four months to determine whether to maintain it or not to lift it.

The authorities explained that efforts were made to curb rice prices, such as liberalizing imports and lowering tariffs, but it did not work quickly in the domestic market.

The Philippines cut rice import tariffs from 35% to 15% last year.

Once a rice exporter, the Philippines has become a representative rice importer as it focuses on imports rather than self-sufficiency.

The U.S. Department of Agriculture predicted that the Philippines will become the world’s largest rice importer last year, beyond China and Indonesia. Relying on imports of rice has made Philippine food security vulnerable to external conditions such as abnormal climate, natural disasters, international disputes such as the war in Ukraine, and export restrictions by major rice exporters, including India.

SALLY LEE

US ASIA JOURNAL

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