Philippine Rice Importers Postpone Vietnamese Shipments Amid Falling Prices
Philippine rice importers have delayed the purchase of approximately 350,000 metric tons of Vietnamese rice due to a significant decline in global rice prices. This decision comes as rice prices in key exporting countries have reached two-year lows, following India's relaxation of export restrictions after a substantial harvest. Initially, deals for Vietnamese fragrant rice were set at around $620 per metric ton, but recent market shifts have seen prices drop to approximately $500 per ton. This decrease is occurring just before Vietnam's new harvest, which is anticipated to be larger than the previous year, potentially exerting further downward pressure on prices.
The postponement of these rice purchases poses challenges for Vietnamese exporters, as some agreements may face renegotiation or default. Despite efforts to liberalize rice imports and reduce tariffs, the domestic market in the Philippines has been slow to respond, with retail prices surpassing expectations. In response, the Philippine government has declared a food security emergency to address the elevated cost of rice, allowing for the release of buffer stocks to stabilize prices. This measure aims to ensure that rice remains accessible to consumers, as the country remains vulnerable to fluctuations in the global rice market.
The situation underscores the complexities of the international rice trade and the challenges faced by importing nations like the Philippines in managing domestic food security. As global rice prices continue to fluctuate, the Philippines must navigate these dynamics to maintain stable and affordable rice supplies for its population.
Market Philippines - News Service
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