Policy Shifts in India and the Philippines Helped Change the Global Rice Market
Indian-American agricultural economist Samarendu stated that policy shifts in India and the Philippines helped change the global rice market landscape.
In 2023, India halted its export of non-basmati white rice due to late monsoon rains and fears of production shortfalls. The Indian government reversed its decision in 2024, lifting the ban and allowing exports once more. Meanwhile, in the Philippines, the government implemented a maximum suggested retail price for imported rice.
Mohanty, who is also an award-winning food pioneer and specialist in international development and rural livelihoods, declared India and the Philippines as “game changers” as their policy shifts allowed global rice prices to decline by 18%. “These concurrent policy changes created a perfect storm that ultimately stabilized and transformed rice markets worldwide,” said Mohanty. He added that since the beginning of 2025, global rice prices appear to soften even further.
India is known as the world’s largest rice exporter. According to Mohanty, India’s decision to lift the ban was “understandable, given record domestic production resulting from favorable monsoon conditions and mounting pressure from farmers facing depressed local prices.”
Mohanty also pointed out the “aggressive market reforms” of the Philippines under the leadership of Agriculture Secretary Francisco P. Tiu Laurel. The Philippines is known as the world’s largest importer of rice, and the government applied strict measures such as apprehending hoarders and price manipulators as well as using technology to monitor rice stocks and movements in order to stabilize rice prices in the country.
In an earlier statement, Secretary Tiu Laurel said that the maximum suggested retail price (MSRP) may be further reduced to PHP 45 per kilo of rice, much lower than the initial price cap of PHP 58/kg that the Department of Agriculture implemented in January.
“The Philippines had long struggled with rice price volatility, with urban consumers often paying significant premiums due to supply chain inefficiencies and market manipulation. What market analysts soon termed the ‘Laurel Effect’ proved remarkable in its impact. By targeting unnecessary artificial demand created by speculation and hoarding, the Philippines’ approach created a ripple effect throughout Asian rice markets.” Mohanty stated.
