AgriNurture, Vietnam’s Vinafood II ink deal on 2-M metric ton rice supply deal

Publicly listed AgriNurture Inc. (ANI) has entered into an agreement (MOA) with Vietnam Southern Food Corporation - Vinafood II to import as much as 2 million metric tons of long grain rice from Vietnam.

In a filing submitted by ANI head of financial services Glene Suyo, AgriNurture the memorandum of agreement (MOA) is exclusive in nature.

“Under the MOA, Vinafood agrees to exclusively supply ANI up to two million metric tons of long grain rice per year for importation to the Philippines.”

The terms and conditions of the supply deal will be finalized in line with applicable Philippine laws, including the proposed rice tariffication bill.

The proposed law, pending in Congress, seeks to lift the quantitative restrictions (QR) on rice and allow private traders to import the commodity from countries of their choice.

Senate Committee on Agriculture and Food Chair Senator Cynthia Villar last week said the Senate has committed to pass the proposed measure within September.

Earlier this month, AGriNurture bagged the original proponent status for its joint venture proposal on meeting the rice supply requirements of the country.

The proposed joint venture with the National Food Authority states that AgriNurture will be in charge of financing the procurement of 500,000 MT of rice per quarter, equivalent to two weeks of the national inventory of subsidized NFA rice. —Jon Viktor Cabuenas/VDS, GMA News