By means of Adrian H. Halili, Reporter
The Department of Agriculture (DA) said on Thursday it is likely to declare a food security emergency for rice as prices of the staple grain remain stubbornly high.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. said he expects the National Food Authority (NFA) to release buffer stocks of local rice in the first week of February, pending the transfer of a National Price Coordinating Council (NPCC). recommendation calling for the declaration of a food safety emergency.
“I don’t have any of thoseFBased on the NPCC’s initial advice, the details are still with the working group. But once it is on my table, there is a good chance that we will announce it so that we can release the shares of the NFA,” he told reporters during a market visit in Pasig City.
“Once I receive it, I will also consult the President for his comments,” he added.
The NPCC has approved a resolution urging the DA to declare a food security emergency for rice, which would pave the way for the NFA tolease buffer stock to stabilize prices.
Under Republic Act (RA) No. 12708 or the Agricultural Tariffication Act, the Secretary of Agriculture may declare a food safety emergency in the event of a shortage of rice or extraordinary price spikes.
Rice prices have remained stubbornly high despite lower import tariffs.
According to the DA’s price monitoring of Metro Manila markets, as of January 15, a kilo of imported specialty rice was priced between P53 and P65, compared to P58 and P65 per kilo a year ago.
The price of imported premium rice stood at P50-P60 per kilo as of January 15, compared to P54-P62 per kilo last year.
On the other hand, imported good milled rice is currently between P44 and P52, while imported regular milled rice is between P40 and P48 per kilo.
Trade Secretary Maria Cristina Aldeguer-Roque, chair of the NPCC, said the resolution was drafted in response to the extraordinary increase in rice prices since 2023.
“All markets must follow the guidelines of the DA to bring down the prices of imported rice for consumers while also protecting the wholesaler, the trader and also the retailer,” she told reporters.
Mr Tiu Laurel said the DA should release the buffer stock from the NFA warehouses, which has reached 300,000 tonnes, before the harvest season.
“The harvest season is coming. If our warehouses are full, we cannot buy from farmers at a good price. We must sell it immediately,” Mr Tiu Laurel said.
Once the NFA buffer stocks are released, Mr. Tiu Laurel said the rice will be sold to local government units (LGU), Kadiwa, Armed Forces of the Philippines, Philippine National Police and other government agencies.
The DA last week said it plans to sell some of the NFA’s old rice stock to LGUs to free up storage space ahead of the rice harvest season.
According to the head of the Department of Agriculture, the NFA would charge a purchase price for palay, or unmilled rice, ranging from P21 to P23 per kilo for clean and dry rice.
The NFA would set a retail price of P36 per kilo to LGUs by February and further reduce it to P33 per kilo in March.
MAXIMUM PRICE
Meanwhile, Mr. Tiu Laurel said the Maximum Recommended Retail Price (SRP) for imported rice, which will be implemented in Metro Manila starting January 20, would also provide a solution to the higher rice prices.
The DA plans to impose a maximum suggested retail price of P58 per kilogram on imported rice with 5% cracked grain content, a measure it says will further reduce the retail price of imported rice.
“Every two to three weeks, the (maximum SRP) may be adjusted until March,” Mr Tiu Laurel told reporters.
“After two to three weeks we can adjust this to P55 per kilo, after another two weeks maybe to P52 per kilo. If the world price falls further, it could soon be as low as P50 per kilo,” he added.
Mr. Tiu Laurel said importers and retailers had previously agreed to a profit margin of P10 per kilo.
“I also consulted the private sector on this and we had a meeting with retailers, importers, DTI (Department of Trade and Industry), PCC (Philippine Competition Commission), BIR (Bureau of Internal Revenue) and everyone,” he said. said. “This decision to link it to P58 was a decision that was not made arbitrarily. It is arrived at in consultation.”
Asked for comment, Raul Q. Montemayor, national manager of the Federation of Free Farmers, said there is no need to declare a food security emergency for rice because of ample domestic supply.
“I don’t think there is a national food security crisis regarding rice. There is no shortage of supply, there is no calamity, harvests will start again in March and prices, although still high, are slowly coming down,” Mr Montemayor said in a Viber message.
He added that the government had failed to go after profitable importers, wholesalers and retailers.
“Instead of running after them, the government has chosen to manipulate the law (RA 12708) to give them the legal basis for releasing NFA shares to LGUs in an effort to reduce prices,” said he.
In a Viber message, former Agriculture Undersecretary Fermin D. Adriano said the NFA’s limited supply may not be enough to influence rice prices.
“Very limited supply compared to the hands of the rice cartel, which controls about 70% of the total supply,” Mr Adriano added. — with input from Kyle Aristophere T. Atienza