Philippines Negotiates with Pakistan to Import Over One Million Tons of Rice Annually

The Philippines Department of Agriculture (DA) is actively negotiating with Pakistan to secure an annual rice import agreement of at least one million tons. This strategic initiative is designed to address rising domestic demand and diversify the country’s rice import sources, ensuring a stable supply amidst global market fluctuations. The proposed agreement, expected to be finalized by June 2025, represents a significant development in the Philippines’ efforts to bolster food security and enhance agricultural trade relations.

On December 16, 2024, a key meeting between Philippines Agriculture Secretary Francisco Tiu Laurel Jr. and Pakistani Ambassador to Manila, Dr. Imtiaz Kazi, outlined the terms of the proposed agreement. Pakistan, currently the third-largest rice supplier to the Philippines after Vietnam and Thailand, offered to supply one million tons of rice annually at competitive prices. This partnership aims to reduce the Philippines’ dependency on traditional suppliers and create a more resilient rice import portfolio.

Ambassador Kazi emphasized the importance of maintaining low import tariffs on rice to ensure affordability for Filipino consumers. In response, Secretary Tiu Laurel indicated that the Philippines might consider extending the current reduced tariff rates, which have been lowered from 35% to 15%, until 2028. This tariff policy not only encourages imports but also ensures that rice remains accessible and competitively priced for middle and low-income households.

Beyond rice imports, the two nations explored additional areas of agricultural cooperation. The Philippines proposed exporting fresh produce such as mangoes, bananas, and durians to Pakistan, catering to its extensive Muslim markets. Additionally, the Philippines expressed interest in adopting Pakistan’s advanced agricultural techniques in areas like irrigation, post-harvest technology, and Halal certification, further strengthening bilateral agricultural ties.

While the agreement holds significant potential for stabilizing rice prices and ensuring food security, it also presents challenges for the domestic agriculture sector. Increased imports of competitively priced rice may exert downward pressure on local rice prices, affecting farmers’ incomes and profitability. To address these concerns, the government must implement sustainable support measures, including investments in agricultural technology, improved infrastructure, and incentives to boost domestic rice production efficiency and competitiveness.

For consumers, the agreement promises affordable rice prices and strengthened food security, particularly during peak consumption periods such as festivals. However, balancing these benefits with the need to protect local farmers remains critical. The Philippine government must navigate this complex dynamic to ensure long-term economic stability and social equity in the rice sector.

The Philippines’ negotiations with Pakistan represent a forward-thinking approach to addressing the nation’s rice supply challenges. By diversifying import sources and fostering bilateral agricultural cooperation, the country takes a significant step towards achieving food security while supporting the sustainable development of its domestic agriculture sector.