Manya Rathore
Research expert covering India
Rice market in the Philippines - statistics & facts
Rice is a staple in the Philippines, with most dishes being served with steaming white or brown rice on the side. Rice is also one of the main ingredients in several snacks or kakanin and even desserts. Unsurprisingly, the Philippines ranks high alongside countries such as China and India when it comes to rice consumption globally. Thanks to its tropical climate, the Philippines has a favorable environment for rice cultivation, which is grown all year round. However, storms and drought significantly affects local production, resulting in import dependency and price fluctuations.
Conversely, record rice import dependency, in addition to fluctuations in production and increased costs, resulted in higher rice prices. For example, the wholesale price of regular milled rice rose by about four Philippine pesos per kilo between 2022 and 2023, leaving the retail price at 42.8 Philippine pesos per kilo, or about nine percent higher. To aid with supply and rising inflation, the government imposed a reduced rice import tariff rate in 2024 from 35 percent to 15 percent, which is expected to reduce prices amid the easing of global rice price in recent months.
Rice production in the Philippines
Rice farming in the Philippines dates back thousands of years, and since then, it has become one of the leading crops produced by farmers in the country. One of the most well-known rice paddies in the Philippines is in the mountains of Ifugao province, called the Banaue Rice Terraces, which were carved by the ancestors of the Igorot people. Since 2016, about five million hectares of land nationwide have been dedicated to cultivating palay, resulting in a yield of about 20 million metric tons of unmilled rice in 2023. The increase in rice production volume can be attributed to the implementation of modern agricultural practices and the availability of varieties being planted. There were an estimated 2.4 million rice farmers in the Philippines as of 2020 — an industry which is heavily male-dominated.Why is there a need to import rice in the Philippines?
Despite a gradual growth in production, the Philippines continues to rely on rice imports, especially from Vietnam and Thailand. In fact, during the 2024/25 marketing year, the country was the leading rice importer globally, after importing roughly 5.4 million metric tons of rice. Fluctuations in rice stock results from low yields, high post-harvest losses, and the increasing threat of climate change. Due to this, rice imports are necessary to increase buffer stock amidst low production output in certain months.Conversely, record rice import dependency, in addition to fluctuations in production and increased costs, resulted in higher rice prices. For example, the wholesale price of regular milled rice rose by about four Philippine pesos per kilo between 2022 and 2023, leaving the retail price at 42.8 Philippine pesos per kilo, or about nine percent higher. To aid with supply and rising inflation, the government imposed a reduced rice import tariff rate in 2024 from 35 percent to 15 percent, which is expected to reduce prices amid the easing of global rice price in recent months.
