Philippines increasingly short of rice

A recent BMI report highlights a significant challenge for the Philippine rice industry, where the average annual growth rate in rice consumption is outpacing domestic production by 0.5%. This gap is expected to worsen, with rice self-sufficiency projected to drop from 91.6% in 2014-2015 to 69.7% in 2024-2025. The country's reliance on rice imports is set to reach a record high of 4.8 million tons in 2024, as population growth and production challenges such as limited arable land and typhoons continue to impact domestic production. To address these issues, the Philippine government is considering measures like extending the Rice Competitiveness Enhancement Fund (RCEF) until 2031 with increased funding and negotiating long-term rice supply agreements with countries like Vietnam and Thailand. The government has also declared a food security emergency due to high retail rice prices, amidst global trends of falling rice prices.

Source: thesaigontimes.vn A recent report by BMI said that the Philippines’ rice consumption will grow at an average annual rate of 2.5% until 2029. Meanwhile, domestic rice production is expected to grow by only 2% annually. “The challenges facing the Philippine rice industry are also reflected in the growing production shortfall, from 1.4 million tons in 2014-15 to an expected 3.5 million tons in 2024-25 and 6.1 million tons in 2028-29,” the report stated. BMI stressed that limited growth in domestic rice production coupled with strong consumer demand has significantly reduced the Philippines’ ability to be self-sufficient in rice. The Philippines’ rice self-sufficiency is projected to decline to 69.7 percent of demand in 2024-25, down significantly from 91.6 percent in 2014-2015. The Philippines’ rising population trend will lead to continued strong demand for rice in the medium to long term. BMI said that Philippine consumer spending on rice will grow faster than total ...