Manila: More than 50 local government units (LGUs) have shown interest in procuring rice stocks from the National Food Authority (NFA) following the declaration of a food security emergency for rice, as reported by the Department of Agriculture (DA) on Monday. DA Secretary Francisco Tiu Laurel Jr. highlighted that although many LGUs have expressed their intent, there are procedural requirements that need to be addressed, involving documentation among the NFA, Food Terminal Incorporated (FTI), and LGUs.
According to Philippines News Agency, the interest from LGUs spans various regions including Metro Manila, Calabarzon, Mimaropa, Bicol, Western and Central Visayas, Zamboanga Peninsula, and the Davao region. The NFA has already stated its readiness to distribute its rice stocks to LGUs, other government agencies, and government-owned and controlled corporations (GOCCs) at PHP33 per kilogram, which can then be sold to consumers at PHP35 per kilogram.
The release of rice stocks under this emergency declaration is anticipated to free up more space in NFA warehouses, facilitating increased palay purchases during the local harvest season. The availability of PHP35/kg well-milled NFA rice may also impact retail prices, aligning with the DA’s goal to reduce prices closer to the PHP41/kg to PHP45/kg range, prior to the price increases noticed in July 2023.
Separately, DA Secretary Tiu Laurel announced expectations for a drop in commercial rice prices to PHP49/kg by March 1, with new stocks arriving from Southeast Asian countries. The DA has engaged with rice importers, traders, and retailers to encourage them to lower prices to more reasonable levels, from the current Manufacturer’s Suggested Retail Price (MSRP) of PHP55/kg.
As of February 15, the MSRP is set to be PHP52, with a target of PHP49 by March 1, contingent on securing cheaper stocks from Vietnam, Myanmar, or Cambodia. Additionally, the MSRP for premium 5 percent broken rice is expected to fall from PHP64/kg to PHP49/kg by March 1.
In June of the previous year, President Ferdinand R. Marcos Jr. issued Executive Order 62 to modify product nomenclature and tariff rates, ensuring a steady supply of goods and protecting the purchasing power of the Filipino populace. Secretary Laurel mentioned that the government’s target price for rice tariff adjustments would be between PHP42 and PHP45/kg, with potential tariff restoration being considered based on consultations and situational assessments.