Global rice prices continued their downward trend, with the cost of 5 percent broken rice from Vietnam—the variety primarily imported by the Philippines—dropping below USD400 per metric ton.
As of Thursday, February 6, data from the Vietnam Food Association, which accounts for 90 percent of shipments from the world’s third-largest rice exporter, showed that 5 percent broken rice was priced at USD399 per metric ton, while 25 percent broken rice fell to USD377 per ton. These prices mark the lowest in over two years.
The ongoing harvest season in rice-producing countries, improved weather conditions—helped by the absence of last year’s El Niño dry spells—and increased supply following India’s decision to lift its year-long ban on non-basmati rice exports in September, have all contributed to the steady decline in rice prices since late last year.
Rice from India, the world’s largest rice exporter, is priced at USD413 per metric ton for 5 percent broken grains, while 25 percent broken rice is selling at USD394 per metric ton.
This continuous drop in global rice prices, combined with the reduction in tariffs—cut by President Ferdinand Marcos Jr. in July from 35 percent to 15 percent—is beneficial for Filipino consumers, especially those in the lower 30 percent income bracket. Poorer Filipinos spend around 18 percent of their budget on rice, double the amount allocated by the average consumer.
Data from the Philippine Statistics Authority shows a deflation in rice prices for January, a trend that Economic Planning Undersecretary and National Statistician Dennis Mapa expects to continue until July.
