MANILA, Philippines – The Philippines has renewed an agreement with Vietnam for the supply of up to 1.5 million metric tons of rice annually until 2013.

Agriculture Secretary Proceso J. Alcala said the renewal was made upon the recommendation of the National Food Authority (NFA) in the face of an increasing global concern over another food crisis following a series of climate-related calamities affecting food producing countries.

Under the agreement, Vietnam has committed to supply the Philippines up to 1.5 million tons of rice annually until 2013.

Actually Alcala said the Philippines is expected to import only about half the 2.4 million MT that it imported last year. He said the NFA Council will meet next week to determine the exact amount of rice imports for this year.

NFA Administrator Angelito Banayo said he recommended the renewal of the supply agreement with Vietnam following an increasing global concern over production shortfalls resulting from a series of natural calamities that has affected several grains producing countries.

“We’re quite worried na baka kapusin tayo ng supply (we’re worried we may have a supply shortfall,” Banayo said, adding “we’re quite worried about prices, that’s why we want to lock in as early as possible yung ating (our) requirements.”

The Philippines is the world’s largest importer of rice and is considered as a market mover.

Banayo said that most likely the Philippines would have to bid out a portion of its rice requirements by the first quarter of this year so that the supply would arrive in time for the traditional lean season.

Meanwhile, Alcala, however, said the DA has taken steps to increase local production in step with the 2013 rice self-sufficiency target.

The agriculture chief remains firm and confident that the Philippines will achieve rice sufficiency by 2013 and will no longer have to import rice by that time.