Philippines emerges as key buyer of Myanmar rice as Vietnam prices stay high

The Philippines' buying interest has shifted to Myanmar rice in recent weeks as elevated Vietnamese prices have prompted importers to diversify sourcing and seek alternative varieties that match local preferences, sources told Platts, part of S&P Global Energy, June 8.

The emerging interest has supported Myanmar export prices amid limited availability, though market participants are uncertain whether the trend is sustainable, as Myanmar prices continue to firm and Philippine consumer preference for Vietnamese rice remains strong.

Myanmar varieties gain traction

A Yangon-based exporter said Philippine buyers have shown strong interest in Myanmar premium varieties, which align with local taste preferences.

"I think Philippine buyers prefer Myanmar summer-crop varieties such as GW11," the exporter said, noting that these varieties are harvested during the summer crop season, and availability is expected to tighten in the coming months, potentially limiting Myanmar's ability to meet continued Philippine demand.

The Philippines imported 23,990 metric tons of Myanmar rice in May 2026, up 20.8% month over month, according to Myanmar Rice Federation data.

A second Yangon-based exporter also said Myanmar's export prices have strengthened as Philippine buyers turn more actively to the market.

"Myanmar prices are going up now a lot due to the Philippines demand," the second exporter said.

The exporter said that long-grain white rice, with a grain size of around 6.2 millimeters, is viewed by some Philippine buyers as comparable in quality to Vietnamese fragrant rice. As a result, buyers have been willing to pay higher prices for the variety, particularly as sourcing from Vietnam has become difficult, the exporter added.

Platts assessed Myanmar 5% WR at $449/mt FOB FCL on June 5, up 12.5% month over month. This price is the highest since Jan 17, 2025, when the price was $459/mt FOB FCL.

High Vietnam rice prices

In recent months, prices for Vietnam Fragrant 5% rice, the most widely exported rice variety to the Philippines, surged amid several factors, including strong Philippine demand, tightening supply following the conclusion of the winter-spring harvest, and elevated production costs.

According to Platts data, Vietnam Fragrant 5% rice prices surged from a record low of $399/mt FOB on March 17 to a peak of $504/mt FOB on May 11, an increase of 26.3% over two months.

However, amid rising prices, Philippine buying activity slowed significantly.

Additionally, the Philippine government's imposition of a retail price cap of Peso 50/kg on 5% broken imported rice under Executive Order No. 118, effective May 14, has further reduced buying interest as according to market participants, the price cap has compressed importer margins by limiting final retail prices.

A Ho Chi Minh City-based exporter said the Philippines is currently buying rice from Pakistan, Thailand and Myanmar rather than Vietnam.

According to the exporter, Philippine authorities have been more cautious in issuing import permits for Vietnamese rice, amid higher prices, although government purchases continue.

The Pakistani rice market has also seen increased Philippine buying interest, with market sources estimating 70,000-75,000 mt booked for June shipment as buyers respond to elevated Vietnamese prices.

The source, however, added that Filipino consumers still favor Vietnamese rice, although current demand dynamics has shifted towards other origins.

Platts assessed Vietnam Fragrant 5% rice at $489/mt FOB June 8, down 2.2% month over month.

A Philippines-based importer said the country's increased purchases from Myanmar and Pakistan were "temporary," adding that "consumers will go back to DT8."

The source added that much of the imported rice is being rebagged and marketed under local brands because of its similarity to domestic rice varieties.

Vietnam exported 1.6 million mt of rice to the Philippines from January-April 2026, up 14% year over year, according to Vietnam Customs data, making it Vietnam's largest export destination for rice.

According to S&P Global Energy CERA, the Philippines is expected to import 5.6 million mt of rice in the 2026-27 marketing year (July-June), up 60% year over year, amid downside risks to the production outlook due to higher fertilizer costs and El Niño-related weather risks.