Agriculture

Rice industry bear the brunt of global competition PhilRice

Cheap imported rice will likely be sold internationally, lowering the prices of local milled rice
Rice industry bear the brunt of global competition PhilRice

As our country, India’s, staple food is said to be rice followed by wheat. The farms lands are extensively used to produce rice and the industry follows a regulatory steps to cultivate in a healthy way.

On an international front the countries rice industry face a huge competition.Whereas Philippine rice industry will soon bear the brunt of global competition as quantitative restrictions may no longer be extended beyond 2017, the Philippine Rice Research Institute (PhilRice) said.

At present, Manila limits the amount of rice allowed to enter via the so-called minimum access volume (MAV) scheme to 805,000 metric tons.

With the government no longer able to control the volume of imported grains once the QR is lifted, PhilRice said cheaper rice that is subject to a 35-percent tariff would compete in the local market.
“Cheap imported rice will likely be sold in the Philippines, lowering the prices of local milled rice and palay. This, in turn, will force farmers to look for ways to reduce their cost of production to retain profit,” the grains research agency said.

“If the QR were removed today and only 35 percent tariff remained as trade protection, local farmers will not be able to compete,” it added.

Relative to exporting countries, however, it was still very expensive to produce in Nueva Ecija, with prices at only P8.87 per kilo in Tamil Nadu and P9.46 in Suphan Buri. It was cheapest to produce dry paddy in Can Tho at P6.50 per kilo.

“There is a wide difference in land productivity. Can Tho produces three rice corps a year while Nueva Ecija only has two; high rice yield also contributes to lower unit cost in Can Tho while high labor cost due to manual labor in Nueva Ecija also contributes to higher cost of local palay,” PhilRice said.

“The practice of direct seeding in crop establishment and the use of combine harvesters primarily, and dependence on family labor explain the lower labor cost in Can Tho. In Nueva Ecija, transplanting, which is labor-intensive, remains popular together with manual harvesting and mechanized threshing,” it noted.

PhilRice said the free use of water from state irrigation canals, greater volume of paddy output, more efficient handling and higher milling recovery were the key factors for Vietnam.
“Clearly, from farm to market, rice in Nueva Ecija is far more expensive to produce than in Can Tho,” it said. 

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