Source: Agro Spectrum India.

Vietnam continues to dominate the Philippines’ rice import market, accounting for nearly 90 per cent of the country’s rice shipments. Despite efforts by the Philippines to diversify its sources, Vietnam remains the primary supplier, providing the vast majority of the rice imported into the country. This heavy reliance underscores Vietnam’s critical role in meeting the Philippines’ rice demand, even as alternative suppliers are being explored to reduce dependency and enhance food security.

The Philippines, the world’s largest rice importer, is seeking to diversify its rice suppliers beyond its main source, Vietnam, to ensure stable supplies and competitive prices. Agriculture Secretary Francisco Tiu Laurel revealed that discussions are underway with private importers to source rice from countries including India, Pakistan, Cambodia, and Myanmar, with potential deals also possible with Indonesia and Thailand.

While Vietnam remains the most reliable supplier, its dominance—accounting for 90 per cent of the Philippines’ rice imports—poses risks in case of supply disruptions. Rice prices from Vietnam recently hit a three-month high due to increased demand from both domestic and international buyers.

Ensuring affordable rice prices is a key priority for President Ferdinand Marcos Jr., who reduced rice import tariffs from 35 per cent to 15 per cent last year and declared a food security emergency to curb inflation. These measures helped lower inflation to its lowest since 2019, allowing for potential interest rate cuts.

Laurel expects the Philippines’ rice imports to fall below 4.5 million tons in 2025, lower than the USDA’s forecast of 5.4 million tons, while domestic rice production is projected to reach a record 20.46 million tons.

Separately, the Philippines benefits from relatively low tariffs—17 per cent—on exports to the US, which could enhance the competitiveness of Filipino products like seafood compared to regional rivals.

Published Date: June 4, 2025