MANILA, Philippines — The country is set to tap a new source of rice imports, as industry stakeholders have agreed to purchase US-grown rice beginning next year.
The Philippine Rice Industry Stakeholders Movement and USA Rice have signed a memorandum of understanding for PRISM members to buy 100,000 metric tons (MT) of bagged and bulk US rice in 2027.
The Philippines did not technically halt imports of rice from the US, but has relied on neighboring countries like Vietnam and Thailand to provide cheaper grain. The agreement will be the first time the country will import a large amount of rice from the US.
The organizations said they intend to work with their respective members along with their governments to facilitate the timely flow of rice trade.
The industry groups said the agreement has the potential to support the Philippines in managing its rice requirements.
“Rice has a historic role as a part of the US-Philippine relationship, so I was happy to sign this agreement here that recognizes our history and moves our industries forward,” USA Rice president and CEO Peter Bachmann said.
He added the agreement could allow Philippine buyers to consider another source of rice supply as they manage their reserves.
“It could give US growers and millers renewed access to an important market at a time when we are in dire need of viable markets,” Bachmann added.
For her part, PRISM lead convener Rowena Del Rosario-Sadicon said that both industries stand to gain from continued collaborations.
The US was among the country’s major rice suppliers from 1997 to 2007, mainly through collaboration with the National Food Authority, when it was still allowed to import rice.
US exporters also supplied rice volumes to the Philippines from the 1960s to the 1980s.
Federation of Free Farmers national manager Raul Montemayor said the expansion of rice trade between the Philippines and the US will depend on the quality and price of US rice compared to alternatives from Vietnam or Thailand.