The Philippines has secured a fresh 1.5 million metric ton rice supply agreement with Vietnam, locking in imports through April next year as the government moves to stabilize prices amid rising inflation, geopolitical tensions, and looming climate risks.

The agreement was finalized during high-level bilateral talks on the sidelines of the ASEAN Summit in Cebu, where President Ferdinand Marcos Jr. met with newly appointed Vietnamese Prime Minister Lê Minh Hưng.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said the deal comes at a critical time as food inflation continues to pressure households and rice prices remain highly sensitive to supply disruptions.

“Securing import volumes until next April is crucial amid geopolitical uncertainties and climate risks,” Tiu Laurel said.

The agreement covers one year of uninterrupted rice deliveries and includes pricing arrangements for the popular DT8 rice variety at $450 per metric ton.

Rice remains central to the country’s inflation outlook after headline inflation accelerated to 7.2 percent in April, driven largely by food costs. The staple commodity also carries one of the heaviest weights in the country’s inflation basket, making supply stability a key government priority.

Tiu Laurel said Vietnam continues to play a vital role as the Philippines’ primary rice supplier, especially as concerns over another possible El Niño episode and regional supply pressures threaten market stability.

“Even the Vietnamese prime minister has consistently highlighted during the bilateral meeting,” he said, referring to Vietnam’s interest in building a longer-term agricultural trade framework with the Philippines.

While negotiations centered on rice, Philippine officials said the arrangement could pave the way for broader cooperation involving other agricultural commodities and food security initiatives.

The discussions also coincided with the 50th anniversary of diplomatic relations between the Philippines and Vietnam, with both sides exploring expanded cooperation in trade, tourism, and agriculture.

Tiu Laurel said the agreement aligns with the administration’s broader push to strengthen intra-ASEAN economic ties and reduce vulnerabilities in regional food supply chains.

“This deal builds on our push for ASEAN countries to trade more closely—it’s another step toward regional integration,” he said.

Apart from Vietnam, the Philippines continues to maintain alternative sourcing arrangements to cushion against market volatility and potential disruptions in global grain flows.