IN JANUARY 2024, President Marcos signed a rice supply agreement with the government of Vietnam for our country’s food security, as we were having production shortfalls coming from a prolonged dry spell and El Niño. The government to government (GTG) agreement was for five years or from 2024 to early 2029.
Just this month, the President also declared a 60-day stop in rice importations to protect Filipino farmers, who are reeling from very depressed farmgate prices, which the government suspects is caused by imports and its reduced tariffs (which EO 62 reduced from 35 to 15 percent until 2028).
Because of the declared policy of stopping imports for 60 days, the Vietnamese rice traders/exporters reacted negatively, which Agriculture Secretary Francisco Tiu Laurel Jr. found inappropriate and warned the Philippines could buy rice from other countries.
He might not realize that a GTG agreement is binding and any unilateral move can be contested in the courts. Under the MOU, Vietnam agreed on a five-year trade commitment to supply, through its private sector, white rice to (the) Philippine private sector, amounting to 1.5 million to 2 million metric tons (MT) per year at a competitive and affordable price
‘Laurel … blames the debacle of the local rice sector to the Rice Tariffication Law, which removed caps on rice imports but imposed tariffs that proponents said would help local rice farmers compete.’
BLAMING THE R.T.L.
Laurel made the warning during a House Committee on Agriculture and Food hearing on August 20 that the Vietnam rice industry can’t challenge the Philippines’ decision to suspend all rice imports, as the Philippines may choose to stop buying from Vietnam altogether, after which he mentioned his recent India trip where he talked to its rice exporters.
But he later clarified to the media he meant Vietnam’s local industry. “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. Under the WTO (World Trade Organization) rules, superior ang national interest… Kung talagang pipilitin nila ‘yan, we’ll find ways. Hindi tayo bibili sa Vietnam. Ganoon kasimple lang ‘yun,” Laurel said at the hearing.
Laurel also blames the debacle of the local rice sector to the Rice Tariffication Law, which removed caps on rice imports but imposed tariffs that proponents said would help local rice farmers compete.
Laurel asked the Senate Committee on Agriculture, Food and Agrarian Reform on Wednesday to look into rising prices of food and basic agricultural commodities, and make amendments through legislation.
“We must revisit, amend and when necessary replace the laws that no longer serve our farmers and consumers. Foremost among these is the Rice Tariffication Law, which he said drifted away from its noble goals by fully liberalizing rice imports,” he said.
“As currently written, the RTL does not reform the rice industry, it threatens to kill it,” he added.
The RTL was signed in 2019 to remove quantitative restrictions on rice imports.
MORE FUNDING FOR AGRI SECTOR
Laurel said the lack of resources is a challenge. Although they are grateful for the increase in the 2026 budget of the DA, the scale needed dwarfs what it currently has.
“If we are to leapfrog into a future of self-sufficiency and agri-industrial strength, our investments must match our ambition,” Laurel said.
The upcoming 60-day suspension of rice imports, is raising concerns among local vendors who fear potential shortages and disruptions to their businesses.
Some rice vendors are worried that their supply of imported rice may not last for the two-month period.
Imported rice, particularly the Coco Pandan variety priced at P49 per kilo at Kamuning Market, is a popular choice for consumers due to its affordability and quality.
The Vietnam Food Association earlier called on its trade ministry to challenge the Philippines’ decision to temporarily stop rice importation with traders, saying this could decrease Vietnamese prices further.
To cushion the potential blow of banning rice imports coming from Vietnam, Laurel said India showed interest in taking a “big share” of the Vietnamese market.
He said importing from India could be cheaper, but shipping is likely to take a longer time.
Transport would take just 8 to 10 days if the rice comes from Vietnam, but this would take 25-30 days coming from India, he explained.
Laurel also confirmed the possibility, if needed, of extending the import ban to 90 days so farmers could recover.
MY PERSONAL TAKE
The Vietnamese rice traders would not react as they did, if Laurel did not issue a double-bladed statement — hinting at India as the alternative supplier.
We don’t just drop our friends and neighbors like that — having found an alternative, they are willing to flaunt a new supplier.
Let’s talk less and act more — whether on plans, programs and strategies. Like they said:less talk, less mistakes.