After Lowering Import Duties to 35%, India plans to export rice to the Philippines

As per the latest notification, the Philippines has lowered its import duty on rice coming from India from 50% to 35%, thus the Southeast Asian country's rice exporters are preparing to send the grain there starting next month. The second-largest importer of the commodity worldwide is the Philippines. The Philippines have fired the first salvo against Thailand and Vietnam's plans to set up a rice cartel by declining the import duty on Indian cereal from 50 percent to 35 percent. Let’s explore the notification in detail.

Philippines Import Duty Reduced to 35%

According to the Philippines Import Export Data, the Philippines' import tax on rice from India has recently been reduced from 50% to 35%, therefore the nation's rice exporters are getting ready to start shipping the grain there as of next month. The Philippines is the second-largest importer of the item globally. The Philippines have launched the opening salvo against Thailand, and Vietnam aims to create a cartel for the import of rice by lowering the import tax on Indian cereal from 50% to 35%.

From 9.5 metric tonnes the previous fiscal year to 17.7 metric tonnes in 2020–21, India's rice exports nearly doubled. According to figures from the Agricultural and Processed Food Products Export Development Authority, shipments of non-basmati rice increased by 160% to 13.09 metric tonnes, about 4% more than they did for basmati rice.

Between 2000 and 2020, the FAO Rice Price Index, which measures the monthly change in rice prices internationally, doubled. The central bank of the Philippines said that because of higher transportation costs, inflation in the Philippines recently increased to a three-year high of 5.4% in May.

Increase in Farm Income

On May 30, Thanakorn Wangboonkongchana, a spokesman for the Thai government, said Bangkok and Hanoi intended to raise grain prices to double farmers' incomes and gain leverage in the global market. According to Thanakorn, one of the grounds for the proposals to establish the cartel is the fact that food grain prices have been dominating for over 20 years, despite rising production costs.

Both nations expressed this idea at a time when the demand for rice on a global scale is beginning to revive after the effects of the Coronavirus outbreak. Get Philippines Export Data

India continues to remain very competitive in the global rice market, according to the International Grains Council (IGC), with its 25 percent broken white rice fetching a quote of $342 per tonne over the weekend. For its 5 percent broken white rice, Vietnam is offering $421, while Thailand is quoting $449.

"Indian exports of rice are increasing right now. When compared to Vietnam and Thailand, our quote is at least $100 per tonne. China, Vietnam, and the Philippines are making significant purchases, he continued.

According to M Madan Prakash, president of the Agri Commodity Exporters Association, India has a high opportunity of increasing its exports to the Philippines. In order to compete with private traders who import rice and sell it at a higher price, the government in Manila is seeking government-to-government exports, he claimed. EximPedia provides reliable Philippines Shipment Data, and much more. It also enables you to obtain data on the top Philippines Export Data, etc. We are available to assist you and boom your business if you have any questions about the Philippines import-export data.