Indian exporters see chance to ship more food grains to the Philippines as the Southeast Asian country lowers rice import tariffs to boost supplies, with the Philippines one of the biggest grain buyers from the region.
According to reports from Manila, the Philippines reduced the most-favored-nation tariff on rice imports from 40% to 35% for in-quota sales and 50% for out-of-quota volume for one year.
Again, in recent years Indian exporters have asked Manila to equalize the tariff system after being hit by a 50% higher rice import tariff in the Philippines. However, due to shortages of imports from conventional producers such as Vietnam and Thailand, Manila has been pressured to cut tariffs in order to keep grain prices in place.
“It’s a positive change for us. Rice Exporters Association Chairman BV Krishna Rao said, “We are now on par with other ASEAN countries.” “We’re still waiting for real orders,” Rao said, adding that this would free up demand in the Philippines of around half a million tonnes.
Rice market in the Philippines
The annual import demand for rice from the Philippines is expected to be around 2.5 million tonnes. The demand for high-quality rice is estimated at around two million tonnes, while the market for low-quality rice is estimated at around half a million tonnes. The Philippines mainly receives high quality aromatic and gooey varieties from Vietnam and Thailand.
In the Philippines, Basmati indian rice is not common because it is more expensive than Thai jasmine and other fragrant varieties. Thai varieties are priced at $ 700 per tonne, while Basmati is priced at $ 1,000 to $ 1,200 per tonne.
Rice exports from India to the Philippines have fluctuated in recent years. “In the long term, it’s a solid environment in which we can increase our market share,” said Rao.