Thailand is intensifying efforts to expand its rice exports to the Philippines, which is emerging as a leading global importer of this essential staple. According to a recent report by the US Department of Agriculture (USDA), the Philippines is set to become the largest rice importer in 2024, with imports projected to reach 4.1 million tonnes, up from 3.2 million tonnes last year.
This rise in demand has sparked a competitive landscape between Thailand and Vietnam, the world’s second and third-largest rice exporters, respectively. "The Philippines is a vital market for us," stated a senior official from the Thai Rice Exporters Association. "We see substantial growth opportunities in the coming years."
Historically, Vietnam has been the primary supplier to the Philippines, accounting for about 80% of its annual rice imports. However, Thailand is keen to seize a larger share of this growing market and has secured a deal to supply at least 130,000 tonnes of rice for the remainder of 2024. "We are dedicated to enhancing our partnership with the Philippines and meeting their increasing rice requirements," said an official from the Vietnamese Agriculture Ministry, emphasizing their competitive product offerings.
Price competitiveness and rice yields are central to the ongoing competition. Although Thailand has significantly increased its rice exports, shipping 300,000 tonnes to the Philippines in the first half of 2024—an impressive 388% rise from the same period last year—Vietnam’s higher yields and lower prices remain a formidable challenge.
Thailand anticipates exporting a total of 8.2 million tonnes of rice this year, a 6.5% decrease from 2023. Charoen Laothamatas, president of the Thai Rice Exporters Association, highlighted the importance of maintaining price competitiveness. "We need to stay competitive to sustain our market share," he said, acknowledging the anticipated challenges posed by increased supply from Pakistan and Vietnam’s superior rice yields.
Additionally, the global rice market is watching India's production closely, which is expected to be plentiful this year. This may influence India's white-rice export policies, potentially flooding the market and affecting global prices. The Philippines has also reduced its rice import tariffs to 15% in June to combat food inflation and boost domestic production while relying on imports to meet demand.
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