Philippines: Rice tariff collection rises 18% y-o-y to PHP 13 billion in Jan-Jul’26

• Rice imports rise 27% y-o-y amid El Nino-related supply risks
• Lower global prices, weaker peso support imports, tariff collection

The Philippines’ rice tariff collection increased 18% y-o-y to PHP 12.8 billion during January-July 2026, from PHP 10.78 billion in the same period last year. July recorded the highest monthly tariff collection of the year at nearly PHP 2.2 billion, almost double the PHP 1.12 billion collected in July 2025.

Rice imports increase 27% y-o-y

Rice imports reached around 3.42 million tonnes (mnt) during January-July 2026, up 27% from 2.69 mmt in the corresponding period last year. Higher imports were aimed at building a buffer against potential extreme weather risks, particularly El Nino that could affect domestic production. Separate Bureau of Plant Industry data showed that rice import applications by eligible traders and importers reached 0.932 mmt in July, the highest monthly volume this year. Nearly 5 mmt of rice imports had been applied for during January-July.

Lower global rice prices

The average price of Vietnamese fragrant 5% broken rice declined 6% y-o-y to $457.3/tonne (t) during January-July 2026, amid weaker international demand and changing harvest dynamics. Cautious buying from key markets has put downward pressure on export prices, while increased selling pressure during harvest periods has also contributed to lower prices. Vietnamese exporters additionally adjusted prices to remain competitive against other major suppliers, including Thailand, amid changing global market conditions. The decline in international rice prices made imported rice more competitive for Philippine buyers.

Philippine peso weakens

The Philippine peso weakened during the same period, with the average exchange rate moving to PHP 60.10/$1 from PHP 57.08/$1 a year earlier. The weaker peso increased the peso value of dollar-denominated imports and contributed to higher rice tariff collections.

Rice tariff revenue supports local industry

Rice tariff collections are earmarked for the development and modernisation of the domestic rice industry through the Rice Competitiveness Enhancement Fund (RCEF). The government guarantees PHP 30 billion for the fund, which is primarily financed through rice tariff collections. If annual rice tariff collections fall below PHP 30 billion, the shortfall is to be covered from the regular budget of the Department of Agriculture. If collections exceed PHP 30 billion, the additional revenue will also remain earmarked for modernisation of the local rice industry.

Outlook

Philippines’ rice imports are likely to remain firm in the near term, as lower international rice prices continue to provide an incentive for importers to source from overseas. Higher imports could support rice availability and help the country build a buffer against potential weather-related risks to domestic production. Meanwhile, the weaker peso could continue to support higher tariff collections in peso terms. The pace of imports and global rice prices will remain key factors influencing tariff revenue and the domestic rice supply situation.