Philippines to sign 5-year rice deal with Vietnam

MANILA, Philippines — The Philippines is expected to forge a five-year rice deal with Vietnam during President Marcos’ state visit later this month to ensure stable supply even during calamities, Agriculture Secretary Francisco Tiu Laurel Jr. said yesterday.

Tiu Laurel said they have prepared a working draft for a memorandum of agreement (MOA), which would guarantee the supply of the staple to the Philippines.

“We were given instructions when we were in the ASEAN meeting in Japan by the President to draft, finalize the MOA with Vietnam, so that it will be signed during his state visit to Vietnam this end of January,” he said, referring to the Association of Southeast Asian Nations.

Asked about the salient points of the MOA, Laurel said it guarantees that Vietnam would supply rice to us even in calamity situation.

He gave assurance that rice supply in the country is sufficient based on the inventories conducted in December and January, in addition to the upcoming rice imports.

“As far as supply is concerned we have enough supply of rice. For December, our stock is quite healthy, January is healthy. There’s additional rice coming,” he said.

Tiu Laurel could not say whether the increase in rice supply would result in lower prices amid fear of tight supply due to El Niño.

“But as far as the price is concerned, it’s hard to predict. The problem is the world price increases because of El Niño,” he said.

Tiu Laurel said even rice producing countries such as Thailand and Vietnam also experience high rice prices.

“The prices of rice in Thailand, which is a major rice producing country, and Vietnam is also going up as of the moment. Even Malaysia and Indonesia (prices) also increase,” he said. “We have to really manage the situation and we are looking at it on a day-to-day basis.”

The country had an ending rice stock of 20 million tons last year. It is eyeing a similar volume this year because of the possible effects of El Niño, which is projected to persist until April, Tiu Laurel said.

Asked whether bringing the price of rice to P20 per kilo remains a goal of the agency, he said it’s an “aspiration.”