Philippines eyes India as alternative import source amid Thai-Viet rice cartel plan —DA exec

The Philippines is considering India, the world’s top rice exporter, as an alternative source of the commodity should its neighbors in Southeast Asia proceed with their supposed plan to raise rice prices and create a rice cartel, a top official of the Department of Agriculture (DA) said Saturday.

In an interview on Dobol B TV, DA Undersecretary Fermin Adriano said that President Rodrigo Duterte has issued an executive order lowering the tariff on imported rice from India to 35% from 50%.

The rice import duty for countries not part of the Association of Southeast Asian Nations (ASEAN) is 50%.

“Kung magkaganito, may alternative na pagkukunan,” Adriano said.

(If this happens, we have an alternative source [of rice].)

A report by Reuters said that Thailand’s government announced its plan to create a pact with Vietnam to boost their bargaining power and help mitigate rising production costs. 

Thailand and Vietnam are the world's second and third largest rice exporters.

The two countries account for 10% of global rice supply, according to data from the US Department of Agriculture.

India, however, accounts for about 40% of the world rice supply.

With this, Adriano said that the planned Thailand-Vietnam rice cartel would be impossible if India will not join the picture.

“Mas mura ang presyo ng bigas mula sa India kumpara sa Vietnam. Ang problema ay logistics,” he said.

(The rice from India is cheaper compared to Vietnam, but the problem is logistics.) —KG, GMA News