Rice losses due to ‘El Niño’ mount

March 4, 2010, 3:32pm

Rice production losses caused by El Niño have widened by more than fivefold in the Philippines, according to government data, deepening the shortfall in the world’s biggest importer of the grain.

The country lost 298,852 metric tons of rough rice as of Mar. 1, according to initial estimates by the Department of Agriculture. The damage estimate rose from 56,696 tons on Feb. 8.

Increased losses may cause the nation to boost imports beyond the record 2.45 million tons planned for 2010 after rains last year wiped out 1.38 million tons of the September- December harvest.

The Philippines was “still considering” whether to allow private companies to import a further 120,000 tons to 150,000 tons of milled rice at subsidized tariffs, Rex Estoperez, spokesman at National Food Authority, the state company that imports the grain for stockpiling, said in an interview.

The Philippines increased imports and exporters including India and Vietnam restricted shipments on food shortage concerns.

“The damage may rise as more reports come in from the affected provinces,” Rudy Guieb, director for field operations at the Department of Agriculture, said in a phone interview from Isabela province in northern Philippines, referring to the March-May harvest.

The government estimates this year’s rice losses may exceed 800,000 tons, the higher end of a range estimated in February, Agriculture Undersecretary Joel Rudinas said Feb. 22.

The dry weather follows the development of an El Niño event, characterized by the warming of sea-surface temperatures along the equatorial Pacific. The event can reduce rainfall in parts of Asia and bring excessive rains to South America, damaging crops. (Bloomberg)