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THE Philippines has assured Vietnam that it continues to honor the agreement it sealed with its Asean neighbor in 2024, saying the 60-day import ban starting September is just a blip in rice trade between the two countries.

Agriculture Secretary Francisco Tiu Laurel Jr. told the BusinessMirror that there would be no changes to the memorandum of understanding (MOU), which stipulates that Vietnam will supply the Philippines with 1.5 to 2 MMT of white rice annually.

“[The agreement] will continue. It’s only a 60-day ban, and we import 4.5 [million metric tons] a year,” Laurel told this newspaper on Thursday.

President Marcos ordered the temporary ban on foreign shipments of the staple grain starting September 1 as part of the government’s efforts to arrest the slide in farmgate prices of palay.

Earlier, the Vietnam Food Association urged its trade ministry to communicate with its Philippine counterpart on which rice varieties cover the ban, as it wishes to maintain partial exports during the scheduled import freeze, citing the bilateral trade agreement signed by both parties.

The Department of Agriculture (DA) had clarified that specialty rice varieties, such as Japanese, black, and basmati rice, will be exempt from the ban.

“Japonica, basmati, and glutinous rice [from Vietnam are] exempted,” Laurel said.

A warning

Meanwhile, the DA chief recently warned Vietnam’s rice industry against challenging the government’s decision.

This, after Reuters reported that the Vietnam Food Association has asked its country’s trade ministry to challenge the Philippines’s move to suspend rice imports for two months.

“I also would like to openly warn Vietnam. Please do not try to do this to the Philippines. We have to protect our farmers. We will do what is needed,” Laurel said during a hearing of the House Committee on Agriculture and Food.

“Under the WTO rules, national interest is superior […] If they file a complaint, we’ll find ways not to purchase [rice] from Vietnam.”

The DA chief said world-leading rice exporter India wants to corner a “big share” of the Vietnamese market, while Myanmar and Cambodia could also be potential suppliers of the staple grain to the Philippines.

He also noted that the country could extend the import ban up to 90 days to ensure stable farmgate prices of palay.

“The harvest sometimes extends until November […] During the peak harvest, there’s a chance that the price of palay will go down again,” Laurel told reporters on the sidelines of the hearing.

“But if we extend it, we might see an increase or maintain a better farmgate price of palay,” he added.

Data from the Bureau of Plant Industry (BPI) showed that 2.67 MMT of rice had entered the country as of mid-August.

Of the total volume, 2.1 MMT of rice came from Vietnam, which maintained its spot as the country’s top supplier. This was followed by Myanmar at 320,560.33 metric tons (MT) and Thailand at 154,046.61 MT.

In 2024, the country’s rice imports settled to an all-time high of 4.8 MMT.

Source : businessmirror