Gov’t to sell NFA rice at P35/kg under food security emergency
Metro Manila, Philippines - Consumers can buy National Food Authority (NFA) rice stocks at P35 per kilogram under the food security emergency declaration, in a government effort to reduce prices near to over a year ago levels.
NFA Acting Department Manager Roy Untiveros said the agency would sell rice buffer stocks to government entities, interested local government units, and Kadiwa stores at P33/kg, and sell these for P35/kg.
“‘Yung unang naririnig natin P38 pero ngayon po kasi papasok na rin ‘yung anihan [It was initially recommended at P38 but the harvest season is approaching] and we really have to release the stocks of NFA, so we can create more space to accommodate naman ‘yung [the] incoming palay deliveries from the farmers,” Untiveros said a news conference on Tuesday, Feb. 4.
Under the amended Rice Tariffication Law, the Department of Agriculture (DA) still cannot directly release NFA stocks to markets even during a food security emergency.
READ: PH declares food security emergency on rice
The NFA will release around 150,000 metric tons of rice within six months, especially to areas with “extraordinary increase” in rice prices.
On LGUs that have submitted intentions to buy NFA rice, Untiveros said, “So far po sa NCR (National Capital Region), including Cavite…53 letters na po ang nai-send natin. And we are waiting for the reply of the LGU so we can ascertain sino ‘yung mga interested to participate.”
[Translation: So far, we have sent 53 letters in NCR, including Cavite. And we are waiting for the reply of the LGU so we can ascertain which of them are interested to participate.]
Agriculture Assistant Secretary Genevieve Guevarra said Kadiwa stores across the country, and stalls inside wet markets in Metro Manila, may begin to sell the cheap rice “within the week or next week.”
Close to July 2023 levels
Agriculture spokesperson Arnel de Mesa said the DA would review the state of emergency monthly or bi-monthly. In its recommendation, the National Price Coordinating Council said it committed a review after four months.
“So ‘pag nakita natin na [Once we see] we are already meeting the objectives, itong [this]declaration, the secretary may lift it already. So, since this is an emergency, we want to resolve it as soon as possible,” De Mesa said.
The NPCC, chaired by the Trade Department, said it found “an extraordinary increase in price of rice when rice inflation has exceeded the upper bound target for food inflation and reached double digits.”
It referred to the 4.2 percent rice inflation in July 2023, which “[exceeded] the upper limit of the 4 percent food inflation target of the Philippines Development Plan 2024-2028.” Rice inflation then soared to 17.9 percent in September 2023.
“Such a condition (food security emergency) is considered to remain in place while rice prices have not returned close to their levels prior to the breach of the food inflation targets which happened in July 2023,” Trade Assistant Secretary Agaton Uvero read a provision of the emergency declaration.
In July 2023, the national average for regular-milled rice (RMR) was at P41.23/kg and well-milled rice (WMR) at P45.32/kg, according to data from the Philippine Statistics Authority.
The PSA then logged a sharp increase in September 2023 at P47.54 for RMR and P52.69 for WMR.
Rice inflation peaked at 24.37 percent in March 2024 before declining towards the year-end. However, rice costs remain high at an average of P48.81 for RMR and P54.38 for WMR, as of December 2024, PSA data showed.
On Feb. 1, Metro Manila markets sold local commercial rice from P37 to P63 and imported commercial rice from P38 to P61, the DA said.
