Ada Pelonia

Vietnam rice prices are still in a slump mainly due to lackluster demand from its buyers, particularly the Philippines—its largest market—which has resumed purchases of the food staple. 

The Food and Agriculture Organization of the United Nations (FAO) reported that its all-rice price index in January rose by 1.8 percent to 102.8 points on a monthly basis and slid by 9.5 percent on an annual basis.

The FAO noted that Indica quotations inched up by 0.7 percent in the reference month to 103.4 points, recording mixed export prices in the major Asian origins.

Compared to other export nations which registered an uptick in prices, it noted that Vietnam rice quotes remained on a downward trend.

“Quotations remained on a downtrend in Vietnam, as sales to Filipino buyers following the 1 January removal of the Philippines’ import ban on non-specialty rice proved insufficient to offset downward pressure exerted by ample inventories and subdued buying interest from other outlets.”

Based on its monitoring, FAO said the average price of the 5 percent broken Vietnamese rice last month stood at $357.1 per metric ton (MT), 14 percent lower than the $416 per MT recorded in the same month of 2025.

Meanwhile, the 25 percent broken Vietnamese price also fell by 13.8 percent year-on-year to $335.1 per MT from $388.8 per MT, according to the FAO.

Vietnam accounted for 81 percent of the country’s rice import volume in 2025. Some 2.76 million metric tons (MMT) of the country’s total rice arrivals of 3.39 MMT last year came from Vietnam.

Manila officially lifted the four-month ban slapped on foreign rice shipments last January 1.

This, after the government issued the import freeze last September to arrest the slide in farmgate prices of palay that hit a low of P8 per kilo in some areas. Initially set to end in November, this was extended until end-2025. 

During the import freeze, only specialty rice varieties were allowed entry into the country, including japonica, glutinous, and basmati. 

Government officials cited the four-month ban as the reason behind the drop in rice arrivals last year to 3.39 MMT from the record 4.81 MMT recorded in 2024. 

The United States Department of Agriculture-Foreign Agriculture Service (USDA-FAS Manila) said in a recent report that the Philippines will still import rice in large quantities this year due to the inability of domestic output to keep pace with rising demand for the food staple.

USDA-FAS Manila said the Southeast Asian nation will continue to bank on imports despite the government’s broadened Rice Competitiveness Enhancement Fund (RCEF).

“FAS-Manila estimates rice imports to remain robust through the rest of Marketing Year [MY] 2025/26, as a rising population continues to drive demand,” it said.

“This increasing demand, combined with limited growth in domestic production despite the expanded RCEF, will result in a persistent and growing production-consumption gap, requiring the Philippines to rely on imports to meet domestic needs.”

The USDA-FAS Manila also warned that compounding factors, such as the peso’s depreciation and the slide in foreign rice quotes, could blunt government efforts to protect farmers while also shielding consumers from elevated retail prices.

Published Date: February 9, 2026