Philippines rice import suspension sparks shipping rush, price concerns

The Philippine government's order to suspend milled rice imports for 60 days starting Sept. 1 has set off a race among suppliers to ship remaining stocks before the cutoff, sources told Platts Aug. 14.

Market participants expect the suspension to create a temporary spike in Vietnamese export prices over the next few weeks before demand from the Philippines eases.

The Philippines, one of the world's largest rice importers, is halting imports to support domestic farmers impacted by falling prices during the harvest season, the government said Aug. 6.

The Philippines' Bureau of Plant Industry has issued new guidelines for milled rice imports ahead of the 60-day suspensions.

"All imported milled rice covered by a valid Sanitary and Phytosanitary Import Clearance (SPSIC) shipped via bulk load carrier must be shipped out from the country of origin on or before August 30, 2025, and shall arrive on or before September 15, 2025 in authorized ports of entry," according to the memorandum dated Aug. 14.

For containerized shipments, the Bill of Lading must be dated on or before Aug. 25, with arrival by Sept. 15 at designated ports: Manila, Davao, Cagayan de Oro and Cebu, the document said.

"Then we are all rushing to fill in whatever limited SPS we have," said a Mindanao-based importer, referring to the Sanitary and Phytosanitary Import Clearances required for rice imports.

Another importer based in the Philippines pointed out the policy's mixed signals: "Yes, we are rushing to ship now. For the past month, they tried to withhold issuing SPS, then just a few days ago they issued a few SPS. How can we ship immediately using containers when we just got SPS? So, the only way is by vessel, and just now they've released this memorandum saying we have to ship within one month. The policy is very confusing."

Industry sources said cargo space is tightening as importers compete to get rice into the four authorized ports before the deadline.

The BPI added that late arrivals will be returned to their origin at the importer's expense, and no new SPSICs will be issued starting Sept. 1 until further notice. Special rice varieties such as glutinous and basmati are exempted.

A source from the Vietnam Food Association confirmed that they urged their country's Ministry of Industry and Trade to challenge the Philippines' rice import ban, noting that the Philippines is Vietnam's largest rice buyer. When asked about the potential impact on the Vietnamese rice sector, the source said, "It is not really a problem now, because we have the African market."

The source added that the Philippines will return to buying Vietnamese rice because of its competitive price and quality.

A Vietnam-based trader said that following the announcement, there has been a rush in the market from Philippine buyers who already hold an SPSIC, even as no new SPS permits are currently being issued for any port. The trader added that the decision came abruptly, creating uncertainty in the market.

Milled rice production in the Philippines is expected to increase 2.5% year over year to 12.3 million mt in the marketing year 2025-26 (July-June), as per S&P Global Energy.