Expect more rice stocks under food security emergency next week

Metro Manila, Philippines - The government may begin releasing rice buffer stock next week as it is poised to declare a food security emergency on the staple, a Cabinet official said.

Agriculture Secretary Francisco Tiu Laurel Jr. said his office received on Thursday, Jan. 30, the resolution from the National Price Coordinating Council (NPCC) on the food emergency to address the “extraordinary” increase in rice prices.

He said the Department of Agriculture (DA), which was given the authority to declare a food security emergency under the Rice Tariffication Law, would still review the resolution. The declaration may be released on Feb. 4.

This would authorize the release of National Food Authority (NFA) rice buffer stock to government agencies, local government units, and Kadiwa stores.

“That is very welcome dahil mababawasan ‘yong mga laman ng warehouses, matutuwa na rin ang ating farmers na makakabili na ang NFA ng bigas mula sa kanila dahil meron ng paglalagyan [because warehouses will be freed up of stocks, while farmers will also be glad that the NFA will buy their produce which will have storage facilities],” Laurel told reporters on Friday.

“Releasing the 300,000 tons of rice to the market within six months, I think, will ease, will soften the market. Hopefully bumaba pa nang konti ‘yong presyo ng bigas [rice prices will further decline],” he added.

NFA rice would be sold for P36 per kilogram, with consumers expected to buy NFA rice at P38 with markup from retailers.

As of Wednesday, Jan. 29, the DA said local commercial rice was sold for P35 to P63 per kilogram in Metro Manila markets, while imported produce have a range of P38 to 61 per kg.

Lawmakers have called on the Department of Trade and Industry, which chairs the NPCC, to release the resolution, which was a requirement to declare a rice emergency. 

The DA has been waiting for the official recommendation since Laurel’s announcement on Jan. 16. 

The possible declaration of a food security emergency will be a follow up move as tariff cuts in July last year failed to significantly reduce the price of imported rice.

The DA also implemented a maximum suggested retail price on imported premium rice.

On Friday, Laurel also signed a memorandum of understanding with MerryMart Grocery, a company under listed DoubleDragon Corp., to sell the P29 aging rice stock for vulnerable sectors. The agreement will be effective until Dec. 31.