Philippines plans to import up to 4.1 million tons of rice, rice prices "heat up" again

Philippines imports 1.5 million tons of Vietnamese rice in 5 months of 2023 Vietnamese rice prices continue to fall sharply, Thai rice prices increase in the opposite direction

According to the latest update report from the US Department of Agriculture (USDA), in 2024, the Philippines could import up to 4.1 million tons of rice, instead of the previous forecast of 3.9 million tons.

With this new forecast, the Philippines' rice imports this year will be 600,000 tons higher than the 2023 rice import volume of 3.5 million tons. If the Philippines imports rice as forecast, this will be a record number for the country (previously in 2022, rice imports reached a record 3.826 million tons).

Explaining the reason for the increase in rice imports by the Philippines, the USDA said that the country increased imports because drought affected domestic rice production.

Philippines dự kiến nhập đến 4,1 triệu tấn gạo, giá gạo “nóng” trở lại

Packing rice for export at Trung An High-Tech Agriculture Joint Stock Company

According to the Philippine press, in February this year alone, the country imported 303,603 tons of rice, 113.6% higher than the same period last year. In the first two months of 2024, 728,254 tons of rice were imported, nearly 85% higher than the same period in 2023. Up to 391,000 tons of rice, equivalent to 54% of rice, were imported from Vietnam. Previously, in 2023, Vietnam was also the largest rice supplier to the Philippines, accounting for 80% of the country's rice import market share.

It is known that in 2024, to ensure the demand for imported rice, since the beginning of the year, the Philippine government has issued 1,009 licenses to rice importers. In addition, at the end of last year, the Philippine government signed an agreement with Vietnam. The agreement is valid for 5 years and each year Vietnam will ensure a rice supply of 1.5 - 2 million tons. In addition, India also "promised" to supplement the rice supply to the Philippines despite the ban on non-basmati rice imports.

In addition to the Philippines, Vietnam's second largest rice importer, Indonesia, recently announced an increase in rice imports in 2024 by 1.6 million tons, bringing total rice imports to 3.6 million tons.

Most recently, Indonesia’s National Food Agency (Bapanas) announced a temporary relaxation of the retail price ceiling for high-quality rice. This order is implemented to ensure the supply of high-quality rice to consumers during Ramadan.

The sharp increase in rice imports from the Philippines and Indonesia has had a significant impact on the global market. Specifically, the Vietnam Food Association (VFA)'s update on export rice prices on March 12 said that the price of 5% broken rice from Vietnam increased by 5 USD to 584 USD/ton compared to last week. Similarly, the price of rice of the same grade from Thailand also increased slightly by 3 USD to 615 USD/ton.

In the domestic market, in recent days, the price of rice purchased by traders in the Mekong Delta has also increased again after previous downward adjustments. Recorded on March 13, the average price of fresh rice purchased at the field was at 7,300 - 8,200 VND/kg. Particularly in An Giang , Dai Thom 8 rice fluctuated around 7,800 - 8,200 VND/kg; OM 5451 at 7,600 - 7,700 VND/kg; OM 18 rice at 7,800 - 8,000 VND/kg; OM 380 rice at 7,500 VND/kg; IR 504 rice at 7,400 - 7,500 VND/kg...

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