The Philippines, the largest rice importer in the world, is seeking to broaden its rice supply sources beyond its main supplier, Vietnam. This move aims to ensure steady availability and competitive pricing in the local market.
Agriculture Secretary Francisco Tiu Laurel shared that discussions are ongoing with private importers to purchase rice from countries like India, Pakistan, Cambodia, and Myanmar. He also mentioned the possibility of securing supplies from Indonesia and Thailand.
Laurel emphasized the need to diversify import sources to maintain fair market conditions. While he acknowledged that Vietnam is a dependable supplier, the fact that it supplies about 90% of the Philippines’ rice imports poses a risk in case of supply disruptions.
Recent data from the UN Food and Agriculture Organization showed that Vietnamese rice prices hit a three-month high in April due to increased demand from both local and international buyers.
Ensuring affordable rice prices is a priority for President Ferdinand Marcos Jr., who previously led the agriculture department before appointing Laurel. Last year, his administration reduced import tariffs from 35% to 15% and declared a food security emergency in February to combat rising prices. These steps have helped lower overall inflation to the lowest rate since 2019, allowing the central bank to contemplate further interest rate cuts.
Looking ahead, Laurel predicted that rice imports this year will be lower than 2024, not exceeding 4.5 million tons. In contrast, the US Department of Agriculture expects the Philippines will import 5.4 million tons by 2025. Domestically, the country is anticipated to achieve a record production of 20.46 million tons of rough rice this year.
Additionally, the Philippines benefits from a 17% duty rate on its goods to the US, which is competitive compared to other Southeast Asian nations, other than Singapore. Laurel noted that this situation could boost Filipino exports, particularly seafood products like tilapia and shrimp, making them more attractive in the US market compared to those from neighboring countries.
