PHILIPPINES RICE TARIFF CUT WILL BENEFIT VIETNAM, NOT FARMERS
The Philippines is moving to cut tariffs on the staple food from 35% to 15% through 2028 to ease the country’s inflation woes. But analysts worry the move could benefit foreign producers such as Vietnam and leave Filipino farmers struggling to compete. Rice makes up 9% of the Philippine consumer price index, but the statement said the staple accounted for more than half the headline inflation rate over the past three months. The Marcos administration is attempting to hold down prices for poor Filipinos by cutting the duty on imported rice to as low as 29 pesos ($0.49) per kilogram within the year.
At the same meeting, the Philippines announced that tariffs on corn, pork and mechanically deboned meat will remain unchanged through 2028. Miguel Chanco, chief emerging Asia economist at U.K.-based Pantheon Macroeconomics, noted that the move will make imported rice cheaper than domestic products, “which in turn will undoubtedly have a negative impact on farmers’ incomes,” he said. He said that the change would be a “huge benefit” to rice exporters in Asia, such as Vietnam and Thailand, but that India will continue to miss the boat due to the country’s export curbs.
(Link: VietnamAgriculture)
GRAIN MARKET JUNE 6: WHEAT CONTINUES TO WEAKEN, CORN AND SOYBEAN RECOVER FROM LOW LEVELS
Soybean and corn prices rose after hitting multi-week lows on Wednesday (June 6) as favorable crop conditions in the US kept prices down. The depreciation of the USD and stable crude oil prices have provided some support for grains. The most active wheat contract on the Chicago Board of Trade fell 0.1% to $6.46/bushel. Soybean prices increased 0.2% to $11.80/bushel, while corn prices increased 1.0% to 4.43-1/2 bushels. The US government said that US winter wheat was harvested 6%, higher than the 5-year average rate. That has taken attention away from crop concerns in Russia. Meanwhile, Ukraine maintains its grain harvest forecast despite bad weather in May. Rabobank said it expected more price changes in June as investigations in the Black Sea and other regions would be updated.
(Link: VinaNet)
