NFA bats for P8 billion in extra funding for rice procurement

THE National Food Authority (NFA) said on Tuesday it will require P8 billion more in funding to achieve its rice inventory goals, which are equivalent to 15 days’ demand, adding that current stock levels are at more than half of the 550,000 metric ton (MT) target.

“To fill up the 15-day buffer stock, we need an additional P8 billion,” NFA Administrator Larry R. Lacson said at a Palace briefing. “However, since our pricing is flexible, we can adjust palay (unmilled rice) prices and purchase more when the cost is lower.”

“My priority is to unload existing stock, which will generate funds to purchase more palay,” he added

In the first quarter, the government procured about 2.2 million bags of palay for P2.6 billion, he said, and indicated plans to actively buy more.

The official rice reserve is about 358,000 MT or 7.16 million bags of rice, equivalent to about 9.36 days of demand, Mr. Lacson said.

“We are on track and we are continuously increasing our buffer stock for rice. As we all know, rice is the main gauge of food security,” he said.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. last month urged the government to allow the NFA to buy about 20% of the harvest to move the needle on rice prices and to give the government more influence on the market.

The Department of Agriculture (DA) in February declared a food security emergency focused on rice to lower the cost of the grain.

The emergency authorizes the DA to release reserves held by the NFA to stabilize prices and ensure that rice remains accessible to consumers.

“We are hopeful of achieving the (15-day reserve level) before the end of the year, or at least by the wet season harvest,” Mr. Lacson said. — John Victor D. Ordoñez