The Philippines, the world’s top rice importer, plans to look beyond its dominant supplier, Vietnam, to ensure steady supplies and competitive prices at home.
The agriculture department is in talks with private importers on purchases from producers like India, Pakistan, Cambodia and Myanmar, Agriculture Secretary Francisco Tiu Laurel said in an interview on Friday. There may also be a “deal” with Indonesia and Thailand, he added.
“We are trying to diversify sources to keep a level playing field,” Laurel said. Vietnam is “the most reliable” supplier, but the fact that its shipments account for 90 per cent of the Philippines’ rice imports could be a “problem” in case of supply shocks, he said.
Rice prices in Vietnam surged to a three-month high in April, driven by increased demand from both domestic and international traders, according to data from the UN Food and Agriculture Organization (FAO).
Ensuring affordable rice remains a top priority for Philippine President Ferdinand Marcos Jr., who previously headed the agriculture department before appointing Francisco Tiu Laurel Jr. in November 2023. To address food inflation, the government reduced rice import tariffs from 35% to 15% last year and declared a food security emergency in February. These measures have successfully curbed inflation, now at its lowest since 2019, creating space for the central bank to consider further interest rate cuts.
Laurel expects this year’s rice imports will be lower than in 2024 and won’t exceed 4.5 million tonnes. His outlook compares with a forecast from the US Department of Agriculture that sees the Southeast Asian nation importing 5.4 million tonnes in 2025. Domestically, the country is on track to produce a record of 20.46 million tonnes in rough rice output this year, the secretary said.
Meanwhile, the Philippines is facing a 17 per cent duty on its goods to the US, the lowest rate in Southeast Asia after Singapore under President Donald Trump’s sweeping tariff agenda. Laurel said this presents an opportunity as it could make Filipino shipments to the US, particularly seafood products like tilapia and shrimp, more competitive than those of its neighbours.
“If our competitors are slapped with higher tariffs than us, it’s fine,” he said.
