Price body seeks ‘food security emergency’ to stabilize rice prices

Metro Manila, Philippines - A government body tasked to stabilize the supply and prices of basic and prime commodities has recommended a “food security emergency,” which would allow the sale of buffer stocks to address costly rice at the retail level.

The multisectoral National Price Coordinating Council (NPCC) has approved a resolution to allow the agriculture secretary to declare a “food security emergency” in light of the “extraordinary” level of rice prices, the Department of Agriculture (DA) and Department of Trade and Industry said on Thursday, Jan. 16.

“Nasa working group ‘yong detalye, once it (official recommendation) comes to my table, the chances [are] we will declare para marelease ang stocks ng NFA (National Food Authority),” Agriculture Secretary Francisco Tiu Laurel Jr. told reporters.

[Translation: The details are still with the working group but when the official recommendation comes to my table, the chances are that we will declare a food security emergency to release the stocks of the NFA.]

Laurel said NFA warehouses are now at capacity with rice buffer stock at almost 300,000 metric tons. He said the agency needs to dispose of these to give way for the harvest season storage requirement in February.

“Assuming ma-approve ‘yan ng January, February, we will sell at P36 to the LGUs (local government units), other GOCCs (government-owned and -controlled corporations), AFP (Armed Forces of the Philippines, PNP (Philippine National Police) para mabenta nila ng P38,” Laurel said.

“Pero by March, ang balak namin ibenta ‘yan ng P33 para makabenta… at P35,” he added.

[Translation: Assuming it will be approved by January, February, we will sell the stocks at P36 to the LGUs, other GOCCs, AFP, PNP, so that they can sell at P38. But by March, we are eyeing to sell them at P33 so that they can sell at P35.]

Under the Rice Tariffication Law (RTL), the NFA was limited to buying buffer stock from farmers, and this can only be distributed during calamities.

The amended RTL allows the DA to sell the buffer stock upon its declaration of a food security emergency as recommended by the NPCC.

The sale is limited to government agencies such as the Department of Social Welfare and Development, Office of Civil Defense-National Disaster Risk Reduction and Management Council, and LGUs. The DA can also sell it through Kadiwa outlets.

The DA is set to release the NFA buffer stock in Metro Manila first, where the actual high prices are seen. Data monitoring is ongoing for other major cities in the country.

“Dapat ibaba ‘yong presyo ng bigas of imported rice para sa mga consumer natin, at the same time, we also protect the wholesaler trader and dealers para at least win-win for both,” Trade Secretary Cristina Roque said. Roque chairs the NPCC.

[Translation: The price of imported rice should be lowered for our consumers, at the same time, we also protect the wholesalers, traders, and dealers. At least, it’s a win-win for both.]

In a Malacañang briefing, Laurel said he has yet to consult with President Ferdinand Marcos Jr. with his plan.

If the declaration will not happen, Laurel said the DA will be forced to wait for the buffer stock to age, as aging rice can be sold.

“So we have to fast-track milling and may delay lahat ‘yung programa, ‘yun ang problema. And problema namin, ‘yun nga harvest season na eh,” he added.

[Translation: So we have to fast-track milling and the program will be delayed. Also, the harvest season is already near.]

Tariff cut a failure?

The planned food security emergency declaration comes after a number of measures to bring down the cost of rice, including a tariff cut through Executive Order 62 in July last year.

The expected P6 to P7 price cut as a result of the tariff reduction on imports from 35% to 15% has yet to be seen.

“During the last NPCC meeting, the DA presented data that showed that even with the tariff cuts and the world prices of rice going down, the retail prices have not gone down significantly. Thus, the current level of prices is extraordinary,” Laurel said, adding that the NPCC “recognizes this condition in principle.”

In a statement, Samahang Industriya ng Agrikultura (SINAG) urged the NPCC also to recommend to the National Economic and Development Authority to repeal EO 62.

“As the interagency body tasked to monitor and stabilize food prices, it is very clear to NPCC that EO 62 was a failure,” SINAG executive director Jayson Cainglet said.

“We are all up in arms now since the promised ₱42-45/kilo of rice did not happen, despite all the pampering, concessions and incentives given to importers,” he added.