Rice market in the Philippines - statistics & facts
Rice production in the Philippines
Rice farming in the Philippines dates back thousands of years, and since then, it has become one of the leading crops produced by farmers in the country. One of the most well-known rice paddies in the Philippines is in the mountains of Ifugao province, called the Banaue Rice Terraces, which were carved by the ancestors of the Igorot people. Since 2016, about five million hectares of land nationwide have been dedicated to cultivating palay, resulting in a yield of about 20 million metric tons of unmilled rice in 2022. The increase in production can be attributed to the implementation of modern agricultural practices and the increase in rice varieties. There are an estimated 2.4 million rice farmers in the Philippines as of 2020, the majority of whom are male.Why is there a need to import rice in the Philippines?
Despite a gradual growth in production, the Philippines is reliant on rice imports, especially from Vietnam and Thailand. In fact during the 2023/24 marketing year, the country was biggest rice importers globally,. This leaves the country’s rice self-sufficiency ratio at 81.5 percent in 2021. Low yields, high post-harvest losses, and the increasing threat of climate change challenge rice production in the Philippines. Although several sources claim sufficient rice supply in relation to the current estimated consumption levels, the Philippines, through private traders, continue to rely on imports to cover potential crop losses from dry weather conditions. Rice imports are also needed to increase buffer stock amidst the expected increase in domestic consumption.Despite import dependence, retail prices of rice are not directly impacted. Instead, high production costs and the lack of a distribution system that allows for a direct transaction between farmers and consumers, contribute to increased prices. In addition, higher costs of fuel and fertilizers can contribute to increased retail prices. In 2022, the average domestic retail price of well-milled rice reached 43.77 Philippine pesos per kilogram, indicating a slight increase from the previous year.