by PressPhilippines and Thailand reduce wheat and corn imports: reasons
How wheat imports will change: forecast by the Ministry
The Philippine Department of Agriculture revised the schedule for the purchase of a number of crops. Imports of wheat and fodder corn were changed in order to compensate for the deficit that existed in the domestic market.
From January to February there were rules for the delivery of 225 thousand tons of corn and 600 thousand tons of wheat. Now under the new rules 450 thousand tons of corn and 1.2 million tons of wheat can be imported within May and June, and 350 thousand tons and 800 thousand tons of grain — from July to August.
It is allowed to import 525 thousand tons of corn and 1.4 million tons of wheat during November and December of this year. According to the memorandum, import of grain into the country is prohibited during March. This is due to the beginning of the campaign to harvest its own crop.
As for the cost of fodder wheat in the South-East Asia region, it reached a mark of 300 dollars per ton. And in a number of countries, due to high prices for corn, increase imports of wheat. It will be used to produce fodder for the agricultural industry.
Following the Philippines, Thailand also reduced imports of these crops. It is planned that for the current season, a total of 3 million tons of wheat will be imported into the country. This figure is 100 thousand tons less than what was announced in the official report last November. In addition, compared to the previous season, deliveries will be reduced by 0.5 million tons. As for wheat, its imports will fall by 9% to 1.2 million tons.
The decision to reduce the supply of crops associated with unfavorable processes in the economy of Thailand. Last year, as a result of the impact of the pandemic and the failure of the tourist season in the country, there was a drop in performance and GDP.
Corn imports will also decrease compared to the 2019/2020 season. A total of 800,000 tons is scheduled to be purchased, down 400,000 tons from the previous period. At the same time, the decrease in corn shipments is more related to an increase in domestic cultivation of the crop. According to forecasts its production will grow up to 5.61 million tons, this figure is by 1.13 million tons more than it was fixed last season.
Due to drought, which affected crops in many countries, the volume of wheat crops in the world market decreased, affecting its value. Therefore, not only the Philippines and Thailand are reviewing grain imports, but also a number of other states are planning to buy less crop than planned even six months ago.