THE PHILIPPINES, the world鈥檚 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 鈥渄eal鈥 with Indonesia and Thailand, he added.
鈥淲e are trying to diversify sources to keep a level playing field,鈥 Laurel said. Vietnam is 鈥渢he most reliable鈥 supplier, but the fact that its shipments account for 90% of the Philippines鈥 rice imports could be a 鈥減roblem鈥 in case of supply shocks, he said.聽
The price of all rice varieties sold by Vietnam rose to a three-month high in April because of an 鈥渦ptick in buying interest from domestic and offshore traders,鈥 according to data from the UN Food and Agriculture Organization.聽
Affordable prices of the staple grain are central to the agenda of President Ferdinand Marcos, Jr., who also helmed the agriculture department before appointing Laurel in November 2023. His government slashed import tariffs from 35% to 15% last year and declared a food security emergency in February to tame runaway prices. That鈥檚 helped slow overall inflation to its lowest level since 2019, giving the central bank room to further cut interest rates.
Laurel expects this year鈥檚 rice imports will be lower than in 2024 and won鈥檛 exceed 4.5 million tons. His outlook compares with a forecast from the US Department of Agriculture that sees the Southeast Asian nation importing 5.4 million tons in 2025. Domestically, the country is on track to produce a record of 20.46 million tons in rough rice output this year, the secretary said.
Meanwhile, the Philippines is facing a 17% duty on its goods to the US, the lowest rate in Southeast Asia 鈥 after Singapore 鈥 under President Donald Trump鈥檚 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 neighbors.
鈥淚f our competitors are slapped with higher tariffs than us, it鈥檚 fine,鈥 he said. 鈥斅Bloomberg
