(Bloomberg) — The Philippines, the world’s prime rice importer, plans to look past its dominant provider, Vietnam, to make sure regular provides and aggressive costs at residence.
The agriculture division is in talks with non-public importers on purchases from producers like India, Pakistan, Cambodia and Myanmar, Agriculture Secretary Francisco Tiu Laurel mentioned in an interview on Friday. There can also be a “deal” with Indonesia and Thailand, he added.
“We are attempting to diversify sources to maintain a stage taking part in subject,” Laurel mentioned. Vietnam is “probably the most dependable” provider, however the truth that its shipments account for 90% of the Philippines’ rice imports might be a “downside” in case of provide shocks, he mentioned.
The value of all rice varieties bought by Vietnam rose to a three-month excessive in April due to an “uptick in shopping for curiosity from home and offshore merchants,” in line with information from the UN Meals and Agriculture Group.
Reasonably priced costs of the staple grain are central to the agenda of President Ferdinand Marcos Jr., who additionally helmed the agriculture division earlier than appointing Laurel in November 2023. His authorities slashed import tariffs from 35% to fifteen% final yr and declared a meals safety emergency in February to tame runaway costs. That’s helped sluggish general inflation to its lowest stage since 2019, giving the central financial institution room to additional minimize rates of interest.
Laurel expects this yr’s rice imports might be decrease than in 2024 and received’t exceed 4.5 million tons. His outlook compares with a forecast from the US Division of Agriculture that sees the Southeast Asian nation importing 5.4 million tons in 2025. Domestically, the nation is on observe to provide a document of 20.46 million tons in tough rice output this yr, the secretary mentioned.
In the meantime, the Philippines is going through a 17% responsibility on its items to the US, the bottom fee in Southeast Asia — after Singapore — below President Donald Trump’s sweeping tariff agenda. Laurel mentioned this presents a chance because it may make Filipino shipments to the US, notably seafood merchandise like tilapia and shrimp, extra aggressive than these of its neighbors.
“If our opponents are slapped with greater tariffs than us, it’s fantastic,” he mentioned.
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