Speaker: Vietnam to supply affordable rice to Philippines

MANILA, Philippines — Amid a possible rice shortage due to the El Niño phenomenon and Typhoon Egay, Speaker Martin Romualdez has secured the commitment of Vietnam to provide the Philippines with a “stable” supply of “affordable” rice.

Romualdez said this was the result of his meeting with Vuong Dinh Hue, president of the National Assembly of Vietnam, on the eve of the formal opening of the 44th AIPA (ASEAN Parliamentary Assembly) general assembly in Jakarta, Indonesia.

The Speaker noted he decided to attend AIPA because there are many “critical issues” that he wants to raise before his fellow legislators from the ASEAN and Brunei Darussalam-Indonesia-Malaysia-Philippines East Asian Growth Area (BIMP-EAGA).

“Among the key issues we want to address here include the protection and welfare of our overseas Filipino workers,” he added. According to Romualdez, the commitment he got from Vietnam on rice supply is an affirmation of the “strong friendly relations” between the two countries.

He underscored that the assurance of supply from Vietnam is expected to boost the Philippines’ rice supply and dampen possible price spikes fueled by speculation over possible shortages.

The Speaker maintained that in return, the Philippines is willing to provide Vietnam with specific products and materials that it may need to “meet the demands of its industries and consumers.”

During the meeting, Romualdez told Hue that he is also looking forward to broadening the areas of cooperation between the two countries, particularly in the areas of energy transition and digital transformation.

The two leaders also discussed possible partnership concerning other agricultural products and construction materials such as cement.

Hue, for his part, had invited Romualdez to visit Vietnam to reciprocate the warm reception he received from members of Congress during his visit in Manila in November 2022.

Palay farmgate price

The farmgate price of palay is already pegged at P30 per kilo as the retail price of local well-milled rice is sold for as high as P50 per kilo amid the limited harvest in the country, according to farmers group Samahang Industriya ng Agrikultura (SINAG).

SINAG chairman Rosendo So added that millers in Bulacan sourced their rice in Nueva Ecija and Pangasinan after the flooding in the province due to rains brought by Typhoon Egay and the southwest monsoon.

“We expect the retail prices of rice to further increase as Bulacan millers buy their palay in Nueva Ecija and Pangasinan. The farmgate price of palay is now P30. If this is the rate, the value of rice is now at P40 per kilo, so we expect the local well-milled rice will increase between P49 and P50 per kilo, and for local regular well-milled rice from the current P43 (per kilo), it will go up to P46 to P47 per kilo,” So said.

He added that rice traders will implement the increase once their old stocks are sold. “When they order new stocks, by next week, consumers will buy rice at a higher price,” So said.

According to him, the price of imported rice is also increasing in the international market.

So said that despite the high retail prices, there is enough supply of the staple food.

“We don’t see (a shortage) as we expect to harvest palay between July and September – around 4,743,000 million metric tons. So, the equivalent to rice is 2.2 MMT up to September,” he added.

So added that the palay harvest will come from Central Luzon and Northern Luzon.

“Many areas in Central Luzon and Northern Luzon were not affected by the typhoon except for Ilocos Norte and Cagayan… From Isabela going to Pangasinan, submerged by flood, was only in Calasiao,” he said.

So added that the country’s palay harvest from October to December 2023 is estimated at 7.6 MMT of palay or 4.7 MMT of rice.

“Our rice stocks will reach before the expected harvest in October down to December. We expect enough supply even up to February and March,” he noted.

Based on monitoring of the Department of Agriculture (DA) on Monday, the retail price of local regular milled rice is pegged at as high as P46 per kilo; local well-milled rice, P50 per kilo; local premium price, P54 per kilo and local special rice, P60 per kilo.?Meanwhile, imported well-milled rice is pegged as high as P46 per kilo; imported premium rice, P52 per kilo and imported special rice, P58 per kilo. — Danessa Rivera