Rice Importation

WHY DOES PHILIPPINES IMPORT RICE?


The Philippines is currently the largest importer of rice in the world, importing around 1.8 million tons of rice in 2008 (World Rice Statistics). Three main factors explain why the Philippines imports rice.

Land area: The Philippines has around 300,000 square kilometers of which around 43,000 square kilometers of harvested area are used for rice production. As most of the country is very mountainous and consists of many small islands, suitable land is limited to expand rice conduction into without affecting wetlands, forests, or areas producing other crops. Urban areas also continue to expand rapidly.

Population growth: The population of the Philippines is estimated at 100 million. Its annual growth rate of around 2% - among the world's highest -  means that just to keep pace with growth demand the country would have to increase rice production and yield at rates rarely seen in history.

Infrastructure: Irrigation infrastructure is not used and maintained as efficiently as it could be, thus reducing productivity potential. Transport infrastructure, particularly good-quality roads, is lacking in the Philippines which affects the transport of rice and hinders rice trade.

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