Vinafood 2 signs US$1 billion rice export deal with the Philippines

Wednesday, 2018-09-19 16:09:09
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Vinafood 2 will export two million tonnes of rice to the Philippines (illustrative image)
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NDO - The Vietnam Southern Food Corporation (Vinafood 2) has signed an exclusive deal with the Philippines’ AgriNurture, Inc. (ANI) to export two million tonnes of rice to the Philippines with a total value of nearly US$1 billion.

The deal starts this year and will last for two years. Under a Memorandum of Agreement signed by ANI President and CEO Antonio Tiu and Vinafood General Director Nguyen Ngoc Nam, the Vietnamese corporation will supply long grain rice to ANI to help address supply issues in the Philippines.

ANI said the terms and conditions of the exclusive supply agreement shall be finalised in accordance with applicable Philippine laws including, but not limited to, the proposed rice tariffication bill.

As accepted by the National Food Authority (NFA), the ANI will import 500,000 tonnes of rice, equivalent to the two-week national inventory of subsidised NFA rice per quarter.

The NFA is required to ensure national food security and to stabilise the price and supply of staple cereals like rice at both farm and consumer levels.

The daily rice requirement of the Philippines is estimated at 32,750 tonnes, making ANI’s 500,000 tonne import just enough to fill the NFA’s 15-day requirement.