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Philippines moves to extend rice import ban, pressuring Asian exporters amid global glut

The restriction, introduced on September 1 for a period of 60 days, was aimed at supporting farmers facing falling paddy rice prices during the harvest season.

PHILIPPINES – The Philippines, the world’s largest rice importer, is preparing to extend its temporary rice import ban until April 2026, Agriculture Secretary Francisco Tiu Laurel Jr. told lawmakers on October 6.

The policy, which initially took effect on September 1 for 60 days, aims to support local farmers by stabilizing palay (paddy rice) prices during the harvest season.

The extension will include a narrow import window in January 2026, allowing just 300,000 metric tons of rice to enter the country.

After that, restrictions would resume through February, March, and April to coincide with the dry-season harvest. Laurel said import arrivals have already surpassed the government’s 2.7 million-ton annual target, reaching 3.5 million tons by September.

The move marks a rare intervention in a market liberalized by the Rice Tariffication Law of 2019, which replaced import quotas with tariffs.

While the Department of Agriculture maintains that rice stocks are sufficient, critics warn the measure could distort trade, increase the risk of illegal imports, or prompt a surge in buying once restrictions lift.

Assistant Agriculture Secretary Arnel de Mesa said current buffer stocks remain “healthy,” enough to cover national consumption for 85 days until year-end.

Production forecasts for 2025 range between 20.29 million and 20.51 million tons, though weather disturbances have already caused losses of nearly 279,000 tons. Officials say the temporary ban is critical to prevent farmgate prices from collapsing further under pressure from low-cost imports.

Pressure on exporters

The Philippines’ decision is sending ripples through the global rice market. Prices for Asian benchmark varieties had already reached their lowest levels in eight years by late September, weighed down by weak demand and a surplus of supply from India, the world’s largest exporter.

In addition, India has announced its target of 30 million tons of rice output for the 2025/26 season, further reinforcing global oversupply.

Vietnam, the world’s second-largest rice exporter, is expected to be hit hardest. Between January and August this year, the Philippines absorbed 2.9 million tons of Vietnamese rice, making it Hanoi’s top buyer.

Export quotations for Vietnam’s 5% broken rice averaged US$372 per ton in September, down 4% from August and 32% below last year’s levels, according to FAO data. Industry observers warn prices could slide another US$10–20 per ton in the weeks ahead.

Thailand is also feeling the strain. Its 5% broken white rice has dropped to about US$334 per ton FOB, close to a nine-year low.

Some exporters are calling for minimum export prices to shore up revenues.

https://millingmea.com/philippines-moves-to-extend-rice-import-ban-pressuring-asian-exporters-amid-global-glut/ QR Code

Published Date: October 9, 2025

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