Vietnam rice prices hold firm as Philippines weighs investment-linked import quotas

Prices steady in the Mekong Delta

Vietnam’s domestic rice market remained stable on July 27, with most prices in the Mekong Delta showing little movement from the previous weekend, according to Vietnambiz. The firm market covered paddy, raw rice and processing by-products, while export quotations also held their ground.

Raw IR 504 rice traded at 9,500-9,600 dong per kilogram, while raw CL 555 rice was quoted at 9,700-9,800 dong per kilogram. Fragrant broken rice remained at 8,400-8,500 dong per kilogram, and rice bran was stable at 7,950-8,100 dong per kilogram.

Data from An Giang province’s Department of Agriculture and Environment showed fresh Dai Thom 8 paddy at 6,850-7,000 dong per kilogram and OM 18 at 6,800-7,000 dong. OM 5451 was purchased at 6,200-6,400 dong, OM 34 at 6,100-6,300 dong and IR 50404 at 6,000-6,200 dong per kilogram.

Vietnam retains a premium in export offers

The Vietnam Food Association quoted Vietnamese Jasmine rice at $546-$550 per tonne. Fragrant 5% broken rice stood at $500-$510 per tonne, while white 5% broken rice was offered at $426-$430 per tonne.

Comparable regional prices showed a wide spread. Thai white 5% broken rice was quoted at $447-$451 per tonne, the highest level among the leading exporters for that grade. India offered both white and parboiled 5% broken rice at $362-$366 per tonne, while Pakistan’s white 5% broken rice remained at $410-$414 per tonne. Vietnam’s white rice therefore carried a premium over Indian and Pakistani offers but remained below Thailand’s range.

Philippines considers new conditions for importers

Against this pricing backdrop, the Philippine Department of Agriculture is considering linking the volume companies may import to their investment in the domestic rice industry, Vietnambiz reported, citing the Manila Bulletin. Agriculture Secretary Francisco Tiu Laurel said import rights could be limited to businesses that have invested in rice mills, drying systems or complete processing lines.

The proposal would also require participating companies to demonstrate that they can purchase and process domestically grown paddy. Tiu Laurel estimated that about 80% of current rice importers focus only on imports and have not invested in processing facilities. The department plans to seek the provision’s inclusion in the proposed Rice Industry and Consumer Empowerment Act, which remains under consideration in the Philippine Congress. If the timetable holds, it would be incorporated before implementing rules are issued in 2028.

The policy is intended to align importers’ interests with those of farmers and processors. Companies holding domestic assets and regularly purchasing local paddy would have less incentive to bring in cheap rice at volumes that could undermine their own investments. Philippine traders nevertheless continue to source rice abroad because strong consumption exceeds domestic production.

Record imports raise prospect of safeguards

Philippine Bureau of Plant Industry data showed imports reached a record 2.75 million tonnes from January through June, up 20% from 2.29 million tonnes in the same period a year earlier. Potential El Niño conditions and the effects of the Middle East crisis have added pressure to the production outlook.

Tiu Laurel has previously urged businesses to limit imports of 5% broken rice and give priority to higher-quality grades. The Department of Agriculture is awaiting a Tariff Commission investigation into whether formal safeguards are warranted. If it finds such measures necessary, the commission could recommend a specific safeguard duty. Department documents underlying the investigation also leave open the possibility of raising import tariffs on some rice categories by at least 13 percentage points from the current 15%.