RICE

SITUATION
PRODUCTION

palay area harvested

25000000 4900000

4800000
20000000
4700000

4600000
15000000

4500000

10000000
4400000

4300000
5000000
4200000

0 4100000
2010 2011 2012 2013 2014 2015 2016 2017
PRODUCTION
PROSPECTS FOR 2018

Production for January-june may reach 8.67 MMT, higher

by1.20 percent in 2017
 2017 SUPPLY UTILIZATION
Amount
2017 Rice Production 19276346.63
Milled rice equivalent
Per capita consumption 107 kgs / year From 128 in 2008
Population 104,918,090
Food Requirement 11,226,235.63
Other Uses Almost 1,500,000 Seeds, feeds and
processing
TOTAL REQUIREMENT 12,726,235
Local production 12,529,625.31
NFA Imports 2017 205,392
38,600
MAV Imports 2017 692,340
IMPORTS
NFA Imports MAV volume
Private sector
imports
2018 250,000 805,200 G to G
250,000 G to P
2017 205,392 692,340
38,600
2012 119,776
2011 251,300
2010 2.216 MMT Inclusive of mav
2009 1.575 MMT Inclusive of mav
2008 2.341 MMT Inclusive of mav
NFA’S MANDATE
• NFA’s food security mandate is to keep buffer stock of 15 days
and an ideal level of 90 days national stock (3 months) to ensure
food security especially during lean months;
• Rice Importation.. When there is a critical demand-supply gap
and emergencies. Volume is determined by inter-agency
committee. Allows for private sector importation through
issuance of import permits
• Palay Procurement
• Distribution– NFA distributes subsidized rice (currently at 27 and
32 pesos per kilogram)

Note:
* National stock (NFA Stocks + Commercial + Household)
 STOCKS
2016 2017 2018
NFA Comml HH NFA Comml HH NFA Comml
Jan 906.5 965.4 1333 545.9 948.4 1269.6 106.9 857.5

Feb 989.6 942.4 1004.6 499.2 686 1145.1

Mar 1067 706.4 886.2 396.1 626.9 1152.3
Apr 1114.3 1005.6 886.2 327.3 907.4 1152.3
May 1143.8 1042 1220.4 270.2 1435.6 1441
Jun 1070 994.7 1168.9 188.4 1288.3 1079.4 1.47*
Jul 911.2 838.8 989.3 155 1204.9 994.8
Aug 782.8 621.6 693.6 107.7 1171 748.3
Sep 622.5 539.3 628.1 65.5 668.3 689
Oct 507.1 539.3 990.7 156 668.3 1071.6
Nov 545.5 1078.8 1677.5 191.9 982.9 1784
Dec 609 1096.7 1678.1 156.6 1056.2 1636.5

As of June 18
STATUS OF 2018 NFA IMPORTS UNDER G TO G
 RICE PRICES
May-18 40.19 43.93
21.02
Apr-18 39.97 43.76
20.67
Mar-18 39.67 43.42
20.4
Feb-18 39.1 43
19.74
Jan-18 38.38 42.4
19.1
Dec-17 38.06 42.3
18.9
Nov-17 38.01 42.18
18.5
Oct-17 38.01 42.2
18.7
Sep-17 38.03 42.28
19.44
Aug-17 37.99 42.16
19.57
Jul-17 37.82 41.9
19.44
Jun-17 36.9 41.8
19.3
May-17 37.49 41.7
19.29
Apr-17 37.09 41.4
18.88
Mar-17 37.05 41.5
18.57
Feb-17 37.09 41.62
18.29
Jan-17 38.1 41.51
18
Dec-16 37.18 41.46
17.79
Nov-16 37.11 41.4
17.3
Oct-16 37.22 41.51
17.4
Sep-16 37.45 41.8
18.54
Aug-16 37.37 41.9
18.89
Jul-16 37.06 41.68
18.71
Jun-16 37.03 41.49
18.49
0 5 10 15 20 25 30 35 40 45 50

RMR Ret WMR Ret Farmgate Price

WORLD RICE TRADE
2016-2017
Global Production 501
Global Trade 45

Thin rice supply in the global

market!
NFA PALAY PROCUREMENT

2013 2014 2015 2016 2017 2018

365,582 26,481 227,935 11825 28,344 334
COMPARATIVE PRODUCTION COST
(PHILIPPINE PESOS PER KILO OF PADDY)

SOURCE: IRRI/Philrice Benchmarking Study

SOURCE: IRRI/Philrice Benchmarking Study
RICE TARIFFICATION

Republic Act 8178 or the “Agricultural Tariffication Act” provided for the
tariffication of agricultural products, except rice, in lieu of quantitative
restrictions (QR).

On June 30, 2017, the waiver to postpone rice tariffication expired which
prompted the Philippine Government to address this issue by amending RA
8178 or passing a law to tariffy rice, to avoid disputes coming from other
WTO member countries, considering the potential size of the domestic rice
market.

In the absence of a law, Executive Order No. 23 was issued in May 2017 to
extend the concessions granted by the Philippines to interested trading
partners. This EO was issued to avoid possible disputes as the country is
still in the process of tariffying rice.

The extension shall be in effect for three (3) years or until the enactment of a
law removing the QR provisions of RA 8178, whichever comes first.
RICE TARIFFICATION
Reversion of the Minimum Access Volume (MAV) to its
CY2012 level of 350,000 metric tons (MT) as indicated in the
Philippines’ commitment to the WTO

• Forty percent (40%)* Most Favoured Nation (MFN) rate for

importation within the MAV from Non-ASEAN WTO member
countries

One hundred eighty percent (180%) MFN out quota tariff rate
(bound rate)
Thirty five (35%) tariff rate for rice importation from ASEAN
countries (in quota and out quota)
RICE TARIFFICATION
BILL (HOR)
Establishment of a Rice Competitiveness Enhancement Fund
(RCEF) from duties collected from rice importation for the
first 6 years
• Role of NFA
• Importation for food security and for maintaining sufficient
buffer
stocks
• Retain its licensing function
• Provision for a special safeguard (SSG) duty for rice
HOR STATUS: The House Committee on Agriculture and
Food approved the Substitute Bill amending the Agricultural
Tariffication Act of 1996 on November 20, 2017.
 It was referred to the House Committee on Ways and
Means on December 12, 2017 and Committee on
Appropriations on February 27, 2018.
 Committee Report was approved and will be taken up in
the plenary upon resumption of session.
SENATE VERSION
The Senate Committee on Agriculture and Food, chaired by
Sen. Cynthia A. Villar, is now collecting information for the
drafting of the Senate version of the bill.
• Three points were raised by Sen. Villar on what should be
considered in the Senate Bill:
Competitiveness of the top rice producing provinces
Effective implementation of the National Single Window
Closing of the National Food Authority (NFA)
SENATE
SENATE STATUS: SBN 1476 or the “Agricultural Tarrification
Act”
 There are two (2) pending Senate Bills (SBs) – Senate Bill
No.1479 (Sen. Ralph Recto); and Senate Bill No. 1689 (Sen. Riza
Hontiveros).
 TheSenateCommitteeonAgricultureandFood,Committeeon
Ways and Means and Committee on Finance conducted three (3)
joint hearings on the bills ( January 23, 2018, February 27, 2018
and March 15, 2018.)
 The Committee on Agriculture and Food, Chaired by Sen.
Cynthia Villar, is still drafting the consolidated version of the
bills.
 Round Table Discussion (called by the Office of Senator
Villar) held last June 7
 THINGS TO CONSIDER
• 2017 production almost covered demand for 2017; supply situation further boosted by 2017 NFA and private sector
MAV imports;
• The rift within NFA Council prevented the replenishment of NFA’s buffer stock early part of this year and affected
availability of low-priced NFA; However, NFA rice imports are now scheduled to arrive under G to G and G to P
arrangement. This is on top of the MAV allocation (private sector imports) for the year;
• Exceptionally difficult to renegotiate QR at this time----QR in place for a long time already - 1995 to 2017 or 22 years
• Potentially, costly in terms of:
• Increase rice MAV from 805,200 MTs
• Reduction in MAV tariff from 35%
• Country specific quotas
• Non-rice concessions
• Nothing is impossible, depends on what price we have to pay and whether we are willing to pay
• Because global rice trade is thin, we need to maintain a comfortable level of self-sufficiency
critical to national security in this era of globalization and climate change;
• Climate change impacts on our traditional sources of imported rice will at least be just as severe,
impacting on their reliability as suppliers to an overly dependent importer;
• Point of no return—if massive displacement happens, land conversions may increase;
• So we still need to install some safeguards if ever (i.e. use of non tariff measures such as SPS,
import surge remedies, increased public investments)
• We need to improve and fast track domestic support to align competitiveness and productivity
and incomes to food security objectives;
• Enhance domestic support delivery systems to fast track competitiveness measures