By Adrian H. Halili, Reporter
THE Department of Agriculture (DA) on Thursday said it’s going to likely 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 discharge of buffer stocks of local rice from the National Food Authority (NFA) by the primary week of February, because it awaits the transmittal of a National Price Coordinating Council (NPCC) advice calling for the declaration of a food security emergency.
“I don’t have the official advice from the NPCC yet, the small print are still with the working group. But once it involves my table, the likelihood is we are going to declare, in order that we will release the stocks of the NFA,” he told reporters during a market visit in Pasig City.
“Once I receive it, I may even seek the advice of 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 might pave the way in which for the NFA to release buffer stock to stabilize prices.
Under Republic Act (RA) No. 12708 or the Agricultural Tariffication Act, the Agriculture secretary can declare a food security emergency in case of rice supply shortages or extraordinary price spikes.
Prices of rice have remained stubbornly high despite lower tariffs for imports.
In response to the DA’s price monitoring of Metro Manila markets as of Jan. 15, a kilogram of imported special rice was priced between P53 and P65 compared with the P58 and P65 per kilo a yr ago.
The value of imported premium rice stood at P50-P60 per kilo as of Jan. 15 from P54-P62 per kilo last yr.
Alternatively, imported well-milled rice is currently between P44 and P52, while imported regular milled rice is at P40 to P48 per kilo.
Trade Secretary Maria Cristina Aldeguer-Roque, who chairs the NPCC, said the resolution was made in response to the extraordinary increase in rice prices observed since 2023.
“All of the markets must follow the directives of the DA to bring down imported rice prices for the consumers and, at the identical time, also protect the wholesaler, the trader, and likewise the retailer,” she told reporters.
Mr. Tiu Laurel said the DA must release the buffer stock from NFA warehouses, which have reached 300,000 metric tons, ahead of the harvest season.
“Harvest season is coming. So, if our warehouses are full, we won’t have the option to purchase from farmers at a great price. We’d like to sell it immediately,” Mr. Tiu Laurel said.
Once the NFA’s buffer stocks are released, Mr. Tiu Laurel said the rice will likely be sold to local government units (LGU), Kadiwa, the Armed Forces of the Philippines, the Philippine National Police, and other government agencies.
The DA said last week that it’s seeking to sell a number of the NFA’s old rice stock to LGUs to unlock warehouse space ahead of the rice harvest season.
The NFA would have a buying price for palay, or unmilled rice, starting from P21 to P23 per kilo for clean and dry, in accordance with the Agriculture department chief.
The NFA would set a selling price of P36 per kilo to LGUs by February and can be further lowered to P33 per kilo by March.
MAXIMUM PRICE
Meanwhile, Mr. Tiu Laurel said that the utmost suggested retail price (SRP) on imported rice, which will likely be implemented in Metro Manila starting Jan. 20, would also address elevated rice prices.
The DA is about to impose a maximum SRP of P58 per kilogram on imported rice with a 5% broken grain content, a move it says will further lower the retail price of imported rice.
“Every two to 3 weeks the (maximum SRP) could also be adjusted until March,” Mr. Tiu Laurel told reporters.
“After two to 3 weeks we will adjust it to P55 per kilo, after one other two weeks possibly at P52 per kilo. If world price goes down further, it may very well be just P50 per kilo soon,” he added.
Mr. Tiu Laurel said that importers and retailers had earlier agreed to a profit margin of P10 per kilo.
“I actually also consulted the private sector on this, and we had a gathering with retailers, importers, DTI (Department of Trade and Industry), PCC (Philippine Competition Commission), BIR (Bureau of Internal Revenue), and everybody,” he said. “This decision to peg it at P58 was a choice not made arbitrarily. It’s made through consultation.”
Asked to comment, Federation of Free Farmers National Manager Raul Q. Montemayor said that there is no such thing as a have to declare a food security emergency on rice as a result of ample domestic supply.
“I don’t think there’s a national food security emergency on rice. There is no such thing as a shortage in supply, there is no such thing as a calamity, harvests will start again in March, and costs, while still high, are literally slowly happening,” Mr. Montemayor said in a Viber message.
He added that the federal government had didn’t go after profiteering importers, wholesalers, and retailers.
“As an alternative of running after them, the federal government has as an alternative opted to control the law (RA 12708), so it gives them the legal basis for releasing NFA stocks to LGUs in an try and lower prices,” he said.
In a Viber message, former Agriculture Undersecretary Fermin D. Adriano said that the limited stock of the NFA might not be enough to influence rice prices.
“Very limited stock in comparison with the hands of the rice cartel, which controls around 70% of total supply,” Mr. Adriano added. — with inputs from Kyle Aristophere T. Atienza
