The Philippines secured a supply agreement with Vietnam for a total of 1.5 million metric tons (MT) of rice at a fixed rate of $450 per MT, as the government looks to bolster local supplies of the staple grain amid potential production challenges later this year.

In a statement on Friday, May 8, the Department of Agriculture (DA) said the deal was reached during President Ferdinand R. Marcos Jr.’s bilateral meeting with newly appointed Vietnamese Prime Minister Lê Minh Hưng on the sidelines of the 48th Association of Southeast Asian Nations (ASEAN) Summit in Cebu province last Thursday, May 7.

The DA said both leaders agreed on a one-year arrangement covering 1.5 million MT of the popular DT8 rice variety, which will be delivered to the Philippines through April 2027.

The price for each MT of imported rice has been fixed at $450, ensuring price stability amid rapidly shifting costs caused by the impact of the Middle East conflict on global supply chains.

Agriculture Secretary Francisco Tiu Laurel said the agreement is crucial in supporting the country’s strong rice demand amid expected challenges in local production in the coming months.

Higher fertilizer prices and the threat of a super El Niño are expected to disrupt the upcoming wet season harvest, as farmers may scale back planting to manage costs.

Tiu Laurel said securing a predictable supply of imported rice would also help stabilize retail prices of the commodity, which carries a significant weight in the basket of consumer goods used to measure inflation.

Inflation, which measures the rate of increase in the prices of goods and services, surged to a three-year high of 7.2 percent in April.

Rice prices, a major driver of the increase, accelerated by 13.7 percent from the previous month’s 3.5 percent.

Even as the government works to bring in more imported rice, Tiu Laurel said protecting farmers and keeping farmgate prices of palay (unmilled rice) stable remain key priorities.

The DA chief earlier told Manila Bulletin that the DA is planning to limit monthly rice import volumes to between 150,000 MT and 200,000 MT from June to October under the proposed Rice Industry and Consumer Empowerment (RICE) Act.

Tiu Laurel also said the supply agreement with Vietnam could serve as a model for broader agricultural cooperation with other major rice suppliers.

The Philippines is likewise planning to secure additional rice imports from Cambodia, India, Myanmar, and Pakistan this year, he recently told Manila Bulletin.

The latest Bureau of Plant Industry (BPI) data showed that a total of 1.58 million MT of imported rice had arrived in the country as of April 23, with Vietnam accounting for 1.36 million MT, or 86 percent of total.

Beyond the one-year agreement, Tiu Laurel said Vietnam is also exploring a long-term trade framework covering rice and other agricultural commodities.