Rice, Sugar Demand Up in Philippines After Super Typhoon Haiyan

Rice and sugar harvests in the Philippines were damaged by Super Typhoon Haiyan when the most powerful storm on record to strike the country unleashed winds and floods that may have killed as many as 10,000 people.

Rice imports may increase, pushing purchases above an estimate of 1.1 million metric tons by the U.S. Department of Agriculture, said Samarendu Mohanty, senior economist at the International Rice Research Institute. Between 50,000 tons and 120,000 tons of sugar may have been lost, the Sugar Regulatory Administration estimated.

An expansion in rice shipments to the Southeast Asian country would offer opportunities to India, Vietnam and Thailand, the world’s three biggest exporters. Stockpiles of the grain in Thailand stand at a record after a state-buying program spurred local harvests. The Philippine government warned that the devastation from Haiyan may hurt the economy, estimating that farm damage totaled 3.7 billion pesos ($85 million.)

A total of 131,611 tons of rice was lost, equivalent to a 1.8 percent reduction in fourth-quarter output, according to a report from the Department of Agriculture on 11 November. About 71,000 hectares (175,000 acres) of farmland were affected, it said, adding that about 4,000 tons of corn were destroyed.

Emergency Mission

The Food & Agriculture Organization is dispatching an emergency mission to the Philippines to gauge the impact from the typhoon, said Hiroyuki Konuma, regional representative for Asia and the Pacific region. While it’s too early to assess the magnitude of the damage, rice imports may rise, Konuma said.

Rough rice fell 0.9 percent to $15.55 per 100 pounds on the Chicago Board of Trade in Manila. Sugar dropped 6.7 percent in the past year to 18.07 cents a pound in New York.

No Communication

The United Coconut Association of the Philippines has yet to receive damage reports from the field as the majority of affected areas still have no communications, said Executive Director Yvonne Agustin. The country is the world’s largest producer after India and Indonesia, according to figures from the Asian and Pacific Coconut Community.