Philippines eyes long-term rice deal with Vietnam to stabilize food prices

PRESIDENT Ferdinand R. Marcos, Jr. said the Philippines is pursuing a long-term rice supply contract with Vietnam as the government seeks to contain food prices amid disruptions in global oil and commodity markets caused by the conflict in the Middle East. Mr. Marcos said he discussed the proposed arrangement with Vietnam’s president, To Lam, during a one-on-one meeting on the sidelines of the 18th BRICS Summit in New Delhi on Sunday. “We sat for 20 minutes with the President of Vietnam and we talked about rice,” Mr. Marcos told reporters on Sunday. “I’m talking about a long-term contract. We talked about pricing,” he said. “It’s not finished yet. We’ve been talking about this for a long time, but at least we had a one-on-one discussion about it,” he added. The Philippines and Vietnam agreed in May to establish a long-term rice trade mechanism, with Vietnam committing to delivering 1.5 million metric tons of rice through April 2027. The arrangement covered Vietnamese DT8 rice at $450 per metric ton, while other varieties were expected to be cheaper. Mr. Marcos did not give a target volume, duration or price following the latest talks. The government has kept rice imports open this year as it prepares for the effects of El Niño on domestic production. The Department of Agriculture (DA) said imports amounted to 3.3 million metric tons (MMT) as of Aug. 3 and that it would not suspend imports this year because of expected weather risks. Rice prices have remained elevated despite efforts to secure supplies. Well-milled rice averaged P56.29 per kilogram in the second half of August, up from P47.07 a year earlier, according to the Philippine Statistics Authority. Mr. Marcos said keeping food available is one area the government can address, unlike oil prices, which he said are largely outside the country’s control. “Because I am so concerned that the food prices have to come down, we’re trying to do everything,” he added. Meanwhile, Mr. Marcos said fertilizer prices remain high. “The supply and the price of fertilizer are still higher than it was before. But there’s sufficient supply and we’ll just have to pay the price and if need be, we’ll subsidize that too,” he said. The higher cost of fertilizer could add pressure on farmers as the government prepares for El Niño. The DA has said a severe El Niño could cut palay (unmilled rice) production by as much as 750,000 metric tons, while fertilizer and other farm inputs remain among the costs farmers are most concerned about. The government raised the National Food Authority’s minimum buying price for wet palay to P21 per kilogram from P17, partly to help farmers cope with higher fertilizer and input costs. — Erika Mae P. Sinaking