By Adrian H. Halili, Reporter
THE SALE of rice reserves to local government units (LGUs) during the food security emergency could generate losses of P2.25 billion for the government, the National Food Authority (NFA) said.
In a briefing on Tuesday, NFA acting Department Manager for Operations Roy Q. Untiveros said the expected losses on the price-controlled sales to LGUs could amount to P12 to P15 per kilogram.
The NFA is expected to release 150,000 metric tons or 150 million kilos over the next six months, or about 30,000 MT per month.
The emergency sales of rice call for the tapping of NFA reserves by Food Terminal, Inc. to LGUs, government-owned and controlled corporations (GOCCs), and other agencies.
The NFA Council had approved a resolution allowing the NFA to sell rice stocks to LGUs and other agencies during the food security emergency.
“The NFA will release (rice) to LGUs, GOCCs and others (agencies) who are interested in selling it at P33 per kilogram, and it is suggested to be sold to the public at P35 per kilo,” Mr. Untiveros added.
The current selling price is lower compared to the earlier proposed price of P36 per kilo, and the suggested retail price is currently capped at P38 per kilo.
On Monday, the Department of Agriculture (DA) declared a food security emergency for rice, giving it authority to release NFA reserves onto the market instead of holding the rice as a “buffer stock.” The release of NFA stock is designed to tame stubbornly high rice prices, even though global rice prices have been easing and import prices should also have benefited from reduced tariffs.
The National Price Coordinating Council had urged the DA to declare a food security emergency for rice, citing “extraordinary” price increases.
Republic Act No. 12708 or the Agricultural Tariffication Act authorizes the Secretary of Agriculture to declare a food security emergency in the event of shortages or extraordinary price increases.
The NFA has said that its inventory is currently over 300,000 MT and needs to free up space for the upcoming harvest.
The NFA has set a buying price for palay, or unmilled rice, of P21- P23 per kilo for clean and dry grain, depending on location.
Mr. Untiveros added that the NFA has invited LGUs and government entities within the National Capital Region, including Cavite, to purchase NFA rice.
“We are waiting for the reply of the LGUs so we can ascertain those who are interested to participate,” he said.
