MANILA – The agreement to establish a "long-term rice trade mechanism" between the Philippines and Vietnam will ensure a stable supply until 2027 amid tensions in the Middle East, the Department of Agriculture (DA) said on Friday.
Stable Supply Amid Geopolitical Risks
The DA, in a released statement, noted the move will help support supply from local production despite the market volatility due to geopolitical risks in the Middle East.
"Securing import volumes until next April is crucial amid geopolitical uncertainties and climate risks," Agriculture Secretary Francisco Tiu Laurel Jr. said, as he lauded the agreement between President Ferdinand R. Marcos Jr. and Vietnamese Prime Minister Lê Minh Hưng.
The agreement was discussed during their bilateral meeting on the sidelines of the 48th Association of Southeast Asian Nations (ASEAN) Summit in Cebu.
"This deal builds on our push for ASEAN countries to trade more closely — it's another step toward regional integration," Tiu Laurel added.
Benefits of the Agreement
With the agreement in place, the DA chief said the Philippines can reduce risks due to market volatility and ensure stable retail prices given a predictable supply.
Under the agreement, the Philippines will have uninterrupted deliveries of 1.5 million metric tons (MT) of Dai Thom 8 (DT8) rice until April 2027.
DT8, also known as the high-quality Vietnamese Fragrant rice, has gained its popularity in the Philippine market for its long-grain, soft texture, and light aroma.
The deal allows the Philippines to purchase the DT8 rice at USD450 per MT until next year.
Future Cooperation
Tiu Laurel added that the focus on rice trade may pave the way for expanded agricultural cooperation, with the deal to serve as a "blueprint."
He also assured that the Philippines is sustaining alternative supply sources to ensure resilience, despite unpredictable regional markets.
