Phl to cut reliance on Vietnam for rice

For several years now, the Philippines relied heavily on Vietnam for rice to address supply shortfalls amid growing demand and declining production from the impact of climate change.

Currently it is looking at possibly sourcing its supplies from countries like India, Pakistan, Cambodia and Myanmar– all in the southeast– which though farther geographically could offer a price advantage than the rising prices of the staple from Vietnam.

However, it must be noted that the country entered into a 5-year supply agreement with Vietnam last year, to ensure the supply of the staple, esp when production declines due to severe storms and other weather aberrations.

The Philippines is currently the world’s top rice importer when in past decades it was the globe’s top exporter during which time Vietnam, Thailand, Cambodia and other countries studied on improving rice production technologies at the International Rice Research Institute in Laguna.

The Agriculture department is in talks with private importers on purchases from producers like India, Pakistan, Cambodia and Myanmar and that there might also be deals with Indonesia and Thailand, said DA Secretary Francisco Tiu Laurel Jr.

“We are trying to diversify sources to keep a level playing field,” Laurel said citing Vietnam as its most reliable supplier. “But the fact that its shipments account for 90 percent of the Philippines’ rice imports could be a “problem” in case of supply shocks,” he said.

The price of all rice varieties sold by Vietnam rose to a three-month high in April because of an “uptick in buying interest from domestic and offshore traders,” based on data from the UN Food and Agriculture Organization.

Affordable prices of the staple grain are central to the agenda of President Ferdinand Marcos, Jr., who earlier on headed the DA before appointing Laurel in November 2023.

The Marcos administration slashed import tariffs from 35% to 15 percent last year and declared a food security emergency in February to tame runaway prices. That’s helped slow overall inflation to its lowest level since 2019, giving the central bank room to further cut interest rates.

Laurel said he expects 2025 rice imports to be less than 2024 and won’t exceed 4.5 million tons.

His outlook compares with a forecast from the US Department of Agriculture which projects the Philippines’ importation to reach 5.4 MMT in 2025. Domestically, the country is on track to produce a record of 20.46 million tons palay output this year, Laurel said.

Bloomberg noted that the Philippines is facing a 17 percent 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 neighbors. “If our competitors are slapped with higher tariffs than us, it’s fine,” Bloomberg further quoted him saying,