Food emergency for rice proposed

THE National Price Coordinating Council (NPCC) has urged the Department of Agriculture to declare a food security emergency for rice, following the approval of a resolution aiming to stabilize local prices.

Trade Secretary and NPCC Chairman Cristina Roque said that the council’s resolution seeks to empower the National Food Authority (NFA) to release its buffer stocks into the market.

She added that this move is expected to temper rice prices and at the same time support Filipino farmers.

“This declaration empowers the DTI to take decisive action in protecting consumer welfare while strengthening our nation’s agricultural backbone,” Roque said on Thursday. She added that this will reinforce and ensure stability for both consumers and the agriculture sector.

Agriculture Secretary Francisco Tiu Laurel Jr. welcomed the initiative, highlighting its alignment with the DA’s efforts to make rice affordable while sustaining farmers’ profitability.

The DA recently implemented a maximum suggested retail price (MSRP) of P58 per kilo for imported rice set to take effect on Jan. 20, 2024.

During a council meeting earlier this week, NPCC emphasized that swift action is needed to address price volatility, protect consumers and provide equal opportunities for farmers.

With these new measures in place, the government reiterated its goal to strike a balance between safeguarding food security and fostering sustainability especially in the agriculture sector.

Roque reaffirmed the DTI’s support for the DA’s push to lower rice prices for Filipino consumers. “The DTI fully supports the DA in all its initiatives. We will help in the monitoring and enforcement of prices set by the DA,” she said.

Under the Rice Tariffication Law (RTL), the National Food Authority (NFA) cannot regulate the rice trade or sell rice directly to the public. Instead, it is limited to procuring palay or unhusked rice from local farmers and ensuring that the country has buffer stocks. With the declaration of a food security emergency, the NFA would be allowed to release its buffer stocks and sell rice directly to the public.

Currently, the NFA has 300,000 metric tons (MT) of rice as buffer stocks. If released, the additional supply may lower the retail price of rice. The release of buffer stocks would also allow the agency to clear its warehouses in preparation for buying palay from local rice farmers in the upcoming harvest season.

Tiu Laurel said rice prices affect inflation and the interest rate policies of the Bangko Sentral ng Pilipinas (BSP).

Rice takes 10 percent of the average Filipino household budget, and even doubles to 20 percent for less privileged families. The DA hopes to lower the retail prices of rice to protect Filipino consumers.