PHL to be among ‘first to know’ of new Vietnam rice policy

AGRICULTURE Secretary William D. Dar said Vietnam has issued assurances on its intent to supply rice to the Philippines, its biggest foreign market, after Hanoi suspended export clearances in late March pending a review of its own domestic requirements during the coronavirus disease 2019 (COVID -19) pandemic.

In a letter to Mr. Dar, Vietnam’s Agriculture and Development Deputy Minister Le Quoc Doanh said Hanoi values its relations with the Philippines within the Association of Southeast Asian Nations, and particularly the two countries’ bilateral cooperation on rice.

“The government of Vietnam always considers rice trading with the Philippines not only of economic importance, but also of significance for our good diplomatic relations between the two nations,” Mr. Le said.

Vietnam is currently reviewing its domestic rice requirements amid a prolonged drought and saline intrusion into its rice fields, which has affected its rice production.

Mr. Le said that the Philippines will be one of the first to be notified of Vietnam’s revised rice export policy.

He added that Hanoi is also working on a possible rice agreement with Manila.

“We will soon announce and provide information on rice exports to the public, business and international partners,” Mr. Le said.

Vietnamese rice accounts for 90% of the 1.376 million MT of rice that have yet to be delivered to the Philippines.

Mr. Dar urged Vietnam to honor previously-signed rice import contracts amounting to 1.248 million metric tons (MT).

The Philippines increased its reliance on rice imports when it enacted the Rice Tariffication Law, which eased import restrictions on private traders but imposed a 35% tariff on shipments of Southeast Asian grain.

As part of efforts to hedge against tighter foreign markets and ensure food security, the Department of Agriculture (DA) adopted a 93% rice self-sufficiency target for the end of this year.

The DA received a provisional green light to boost domestic rice production from the InterAgency Task Force for Managing Emerging Infectious Diseases (IATF), which endorsed a P31billion supplemental budget for the so-called “Plant, Plant, Plant” program.

The supplemental budget is currently awaiting President Rodrigo R. Duterte’s approval.

Mr. Dar said the extra funds will boost rice self-sufficiency from 87% to 93%.

The government effectively abandoned rice self-sufficiency policies with the Rice Tariffication Law.

“With the funds in place, we could boost production by the end of December to 22.12 million metric tons (MT) of palay (unmilled rice), equivalent to 13.51 million MT of rice or 93% of the country’s total demand at 14.46 million MT,” Mr. Dar said.

The government has announced plans to import 300,000 MT to ensure ample domestic rice supply.

IATF approved the recommendation by the DA that the Philippine International Trading Corp (PITC) import more rice via government-to-government (G2G) schemes.

Mr. Dar said the current rice inventory is 2.661 million MT, sufficient for 75 days.

He added that the dry-season harvest and imports on order are also expected to augment the rice supply.

“An estimated 4.1 million (MT) of palay will be harvested this dry season, equivalent to 2.7 million MT. Additionally, 1.3 million MT of previously-contracted imports have yet to be delivered,” Mr. Dar said.

The DA estimates weekly rice demand for Metro Manila at 26,241 MT.

The Philippines was the world’s biggest rice importer in 2019, shipping in 2.9 million MT, most from Vietnam and Thailand.

Vietnam is the world’s thirdlargest rice exporter, behind India and Thailand. Its rice exports rose 4.2% to 6.37 million tonnes in 2019. —