P27/KILO NFA RICE STOCKS
ENOUGH FOR EIGHT MONTHS
By Manny Piñol
There will be no repeat of this year’s mistake when the National Food Authority (NFA) rice stocks sold at P27 per kilo in the market were depleted because of delayed importation resulting in speculation which sent rice prices soaring.
In preparation for the lean months, the NFA has established a stock inventory of 750,000-metric tons of imported rice which will ensure an 8-month supply of government subsidized rice at 10% market participation.
Added to the P7-B worth of palay which will be procured by the NFA from local farmers, the NFA has given the assurance that there will be enough supply of government subsidized rice in the market next year.
NFA Acting Administrator Tomas Escarez reported that the approval by the NFA Council of the importation before the end of the year has assured that the market will not see a repeat of what happened earlier this year.
The 750,000-metric tons of imported rice will be sold at P27 per kilo while the NFA will seek guidance on the selling price of the locally procured paddy rice since this will be bought at P17 per kilo plus P3.70 per kilo incentive.
Early this year, prices of commercial rice rose to unprecedented levels after NFA rice stalls ran out of stocks sold at P27.
It resulted from the disagreement between the NFA Council and the NFA on what mode of importation to use in buying the imported rice.
In April, President Duterte had to step in and talked to rice traders to help stabilize the prices in the market while directing the NFA to import the rice using the fastest mode.
By the time the NFA imported rice arrived, prices in the market had already reached the P60-per kilo level.
With the return of the NFA to the DA, the NFA Council implemented the Suggested Retail Price Program which set a cap on the prices of rice.
President Duterte also issued an Executive Order easing the process for importation which allowed the entry of imported rice which greatly stabilized the supply in the market.
By the end of the year, the country will have a 134-day buffer stock of rice in the warehouses of both the NFA and private traders, and in household storage facilities, the highest buffer stock in recent years.
The country currently produces 93% of the national rice requirements.
With the implementation of the Rice Tariffication Program, however, the local production is expected to increase to an estimated 95% of the national consumption by 2020.
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