NFA pushes local gov’ts to buy rice stocks
The National Food Authority (NFA) on Friday urged local governments to hasten their availments of cheap NFA rice so that it can continue to procure more rice and help bring down rice prices.
“This will open up space in our warehouses, allowing us to procure more palay and ensure that farmers aren’t at the mercy of traders pushing down prices,” NFA Administrator Larry Lacson said in a statement on Friday.
“This appeal comes at a critical time, as the summer harvest approaches. The NFA is aiming to procure as much palay as possible while ensuring there is enough storage capacity for future needs,” the NFA said.
With warehouses nearing their maximum storage capacities, Lacson said buying rice stocks would not only create additional space but also help the grains agency stabilize prices by preventing the exploitation of farmers by middlemen and traders.
The NFA cited reports saying that traders are purchasing palay for as low as P15 per kilogram, a decrease of about 34 to 37 percent from its buying price ranging between P23 and P24 for clean and dry palay.
“Given the national average production of 4.1 tons per hectare, each peso movement in palay prices can significantly impact farmers—either adding or subtracting P4,100 per hectare,” it said.
As of Feb. 26, local regular milled and well-milled rice retailed from P38 to P52 per kg, lower than the P49-P55 per kg recorded in the same period a year ago, according to the Department of Agriculture’s (DA) price monitoring of Metro Manila markets.
Imported regular milled and well-milled rice was priced from P36 to P46 per kg, also lower than P50-P55 per kg.
The DA started the release of NFA rice stocks to local governments last week after declaring a food security emergency on Feb. 3 to arrest rising retail prices of the staple food.
The declaration aims to address the “extraordinary” increase in retail prices and ensure the availability of affordable rice for the duration of this emergency, as recommended by the National Price Coordinating Council.
Local governments may purchase NFA rice from the Food Terminal Inc. at P33 per kg and sell it to the public at P35 per kg.
Likened to a race
During a ceremonial turnover of NFA rice held earlier, Agriculture Secretary Francisco Tiu Laurel Jr. said the distribution is a “race” as the grains agency needs to unload its stocks “as fast as possible” in time for the harvest season.
So far, San Juan City ordered another batch of NFA rice after it became the first local goverment to sell the commodity on Monday. The local government procured an initial 1,000 sacks.
In a message to the Inquirer, Lacson said Navotas is also selling NFA rice while Camarines Sur has placed its order. The three local governments have pending orders for over 120,000 sacks of rice.
Lacson said 67 local governments have signified their interest in buying NFA stocks, adding, “[There is] no deadline for ordering, as long as there is a food emergency, it is ongoing.”
Tiu Laurel has instructed the NFA and FTI to facilitate the quick release of rice stocks, including offering easier payment terms for local governments.
“This program will not only provide affordable, good-quality rice for consumers but will also help the NFA support local rice farmers,” he added.
The amended rice tariffication law authorizes the DA to declare food security emergency on rice to address supply shortages or extraordinary increases in prices by releasing NFA stocks to local governments and other government agencies.
