Philippines, Vietnam sign deal for 1.5 million tons of rice
Philippines signed a one-year agreement with Vietnam to import 1.5 million metric tons of rice through April 2027 at a benchmark price of $450/ton. The deal aims to secure stable supplies amid geopolitical tensions, climate risks, and rising regional demand.
The Philippines and Vietnam signed a new rice supply agreement on Thursday during high-level bilateral talks on the sidelines of the ASEAN Summit in Cebu City, as Manila moves to secure stable imports amid rising global uncertainties.
Department of Agriculture Secretary Francisco Tiu Laurel Jr. said the Philippines secured a one-year agreement for the supply of 1.5 million metric tons of rice from Vietnam, ensuring uninterrupted shipments through April 2027. The deal helps stabilize the domestic market against geopolitical risks and climate-related production threats.
“Securing import volumes until next April is crucial amid geopolitical uncertainties and climate risks,” Tiu Laurel said, noting that stable supply is essential to keeping rice prices manageable in the domestic market.
Both sides finalized pricing and logistics arrangements and agreed on a benchmark price of $450 per metric ton for the widely consumed DT8 rice variety. Vietnam remains the Philippines’ largest rice supplier and accounts for the bulk of the country’s imported grain requirements.
Tiu Laurel said Manila is prioritizing reliable supply channels as regional demand continues to rise, fueled partly by tensions in the Middle East and concerns over possible production disruptions from another El Niño episode. He added that Vietnam seeks a long-term trade framework covering rice and other agricultural commodities.
“Even the Vietnamese prime minister consistently highlighted this during the bilateral meeting,” Tiu Laurel said.
President Ferdinand Marcos Jr. and Vietnam Prime Minister Lê Minh Hưng pushed the deal during the latter’s first ASEAN Summit appearance in Cebu. The two leaders also commemorated the 50th anniversary of diplomatic relations between the 2 countries while discussing expanded cooperation in trade, tourism, agriculture and investment.
While negotiations centered on rice, officials said the agreement could pave the way for expanded agricultural cooperation between the two Southeast Asian neighbors.
Despite the agreement with Vietnam, Tiu Laurel said the Philippines will continue diversifying its rice import sources to cushion against market volatility and supply disruptions.
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Source : Manila Standard
