NFA rice price of P27 a kilo to stay until end-year: NEDA

February 28, 2019

The National Food Authority (NFA) rice price of P27 per kilo will remain until the end of the year, the National Economic Development Authority (NEDA) said on Thursday.

Until December 2019, NFA will continue to have a 15 to 30 day inventory and other existing guidelines will be followed.

However, NEDA clarified that once the Rice Tariffication Law is implemented NFA will lose its regulatory functions, such as licensing and provision of import permits with retailers.

NFA can only sell their buffer stocks through auction with commercial retailers where they are required to sell it at P27 per kilo but it will not be named “NFA rice”.

“NFA will continue to have the buffer stocks and there are going to be replenish, we cannot keep the buffer stock for a long time,” Assistant Socioeconomic Secretary Mercedita Sombilla said in a media forum in Ortigas, Pasig City.

“If there is no emergency, that stock has to be replenished and (it) has to go to the market,” Sombilla added.

Sombilla said Filipinos can expect lower rice prices as cheaper imports will be coming in.

“The 27 pesos of NFA is very much subsidized. What the study has been showing, even DTI (Department of Trade and Industry)’s review of the market, the average price that should really be in the market would be on the range of 30 to 34 (pesos), she added.

''That would still be cheap price. Certainly the 27 (pesos) will continue to be there because of the NFA’s buffer stocking and its continued unloading of its stock,” she explained.

“In fact, and I said it could probably go cheaper once we stabilize, normalize the market as cheaper imported rice will come in,” she added.

Sombilla said they are expecting that the absence of NFA rice price will no longer have that big an impact on consumers.

NEDA Director General Ernesto Pernia said they expect to supply NFA rice in remote areas where its not profitable for private sector traders and importers.

“It’s the government’s responsibility,” said Pernia.

He then debunked the claim of Agriculture Secretary Manny Pinol that it will be trouble once El Nino hits Vietnam and Thailand, the Philippines' two main sources of rice imports.

“You know it is less likely that Thailand and Vietnam would be hard hit by climate change more than us... That’s what he (Pinol) has been saying that we need to have rice self-sufficiency in anticipation of a climate change hitting Thailand and Vietnam. It does not hold water to me,” Pernia added.

NFA’s palay procurement program has been too small to influence farm gate prices with its share of procured palay from the total rice production only averaging at 1.89 percent from 2000 to 2017.

“We would like those in the agriculture sector to have better income and employment opportunities, and provide a stable, comfortable, and a secured for everyone – a life free from hunger,” said Pernia.

Socioeconomic Planning Undersecretary Rosemarie Edillon said it still being discussed whether NFA should downsize their manpower.

“We will follow the principle that we should mitigate the adverse impact on them. Off hand, we would think there will be a changed management strategy here. We need to come up with an inventory of the competencies of the existing personnel and do if necessary, reskilling,” Edillon said.

She said there are a lot of agencies where NFA personnel can go to and for those who would rather not be working Edillon said there will be a retirement package.

Under the RA 11203 or Philippine Rice Tariffication bill, NFA shall maintain a buffer stock for emergency and for disaster relief programs which shall be sourced from local farmers.

The NFA Council shall promulgate rules, regulations and procedures involving the acquisition, maintenance and distribution of buffer stocks. Ella Dionisio/DMS