Philippines opens its rice market to India with duty cut

With the Philippines reducing import tariff on rice to strengthen provides, Indian exporters see an option to ship out far more of the foodgrain to the South-East Asian country, 1 of the greatest grain customers in the area.

According to experiences from Manila, the Philippines past 7 days decreased the most favoured country tariff on rice imports to 35 for each cent from forty for each cent for in-quota buys and fifty for each cent out-quota quantity for 1 year.

For the earlier pair of many years, Indian exporters, who confronted bigger rice import tariff of fifty for each cent in the Philippines, have been pursuing with Manila for equalising the responsibility construction. Having said that, with their standard suppliers this kind of as Vietnam and Thailand experiencing provide constraints, Manila has been compelled to lessen the tariff to preserve the cereal costs below test.

“It’s a very good development for us. We are now at par with other ASEAN countries,” stated BV Krishna Rao, President of The Rice Exporters Affiliation. “We are still awaiting the genuine orders,” Rao stated incorporating that this will open up a current market of close to half a million tonnes in Philippines.

Current market measurement

The once-a-year rice import current market in Philippines is believed at close to 2.five million tonnes. The superior high quality rice current market is close to two million tonnes, when the lessen high quality is close to half a million tonnes. Vietnam and Thailand provide mainly the superior high quality fragrant and glutinous varieties to the Philippines.

The Indian Basmati rice doesn’t discover important takers in the Philippines as it is regarded as costly in comparison to Thai Jasmine and other fragrant varieties. When Basmati is priced at $one,000-one,200 for each tonne, the Thai varieties are obtainable at $seven hundred for each tonne.

Indian rice exports to the Philippines have confronted a risky craze in recent many years (see desk). “It is a very good current market in the long operate, where by we can increase our current market share,” Rao stated.