By Adrian H. Halili, Reporter
THE Department of Agriculture (DA) on Thursday announced it is likely to declare a food security crisis for rice as prices of the essential grain remain persistently elevated.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. mentioned his anticipation for the delivery of buffer stocks of domestic rice from the National Food Authority (NFA) by the first week of February, as it is awaiting the submission of a recommendation from the National Price Coordinating Council (NPCC) urging the declaration of a food security emergency.
“I don’t have the official recommendation from the NPCC yet; the details are currently with the working group. However, once it lands on my desk, the likelihood is we will declare it, allowing us to release the stocks of the NFA,” he communicated to reporters during a market visit in Pasig City.
“Upon receipt, I will also consult with the President for his feedback,” he added.
The NPCC has ratified a resolution urging the DA to proclaim a food security emergency for rice, facilitating the NFA to distribute buffer stock to stabilize prices.
Under Republic Act (RA) No. 12708 or the Agricultural Tariffication Act, the Agriculture secretary is empowered to declare a food security emergency in cases of rice supply deficits or exceptional price surges.
Rice prices have remained stubbornly high despite reduced tariffs on imports.
According to the DA’s price tracking of Metro Manila markets as of Jan. 15, a kilogram of imported special rice was priced between P53 and P65 compared to the P58 and P65 per kilo last year.
The cost of imported premium rice was between P50-P60 per kilo as of Jan. 15, down from P54-P62 per kilo the previous year.
Conversely, imported well-milled rice is currently priced between P44 and P52, while imported regular milled rice is between P40 to P48 per kilo.
Trade Secretary Maria Cristina Aldeguer-Roque, chair of the NPCC, mentioned that the resolution was established in reaction to the significant rise in rice prices noted since 2023.
“All markets must adhere to the directives of the DA to reduce the prices of imported rice for consumers while simultaneously safeguarding wholesaler, trader, and retailer interests,” she told reporters.
Mr. Tiu Laurel indicated that the DA needs to release the buffer stocks from NFA warehouses, which currently total 300,000 metric tons, in advance of the harvest season.
“The harvest season is approaching. Therefore, if our warehouses are filled, we won’t be able to procure from farmers at favorable prices. We need to move it promptly,” Mr. Tiu Laurel stated.
Once the NFA’s buffer stocks are distributed, Mr. Tiu Laurel mentioned that the rice will be sold to local government units (LGUs), Kadiwa, the Armed Forces of the Philippines, the Philippine National Police, and other governmental entities.
The DA indicated last week that it plans to sell some of the NFA’s older rice stock to LGUs to clear up warehouse capacity ahead of the rice harvest season.
The NFA would set a buying price for palay, or unmilled rice, in the range of P21 to P23 per kilo for clean and dry quality, according to the Agriculture department leader.
The NFA would establish a selling price of P36 per kilo to LGUs by February, which would be further decreased to P33 per kilo by March.
MAXIMUM PRICE
Simultaneously, Mr. Tiu Laurel stated that the maximum suggested retail price (SRP) on imported rice, which will take effect in Metro Manila starting Jan. 20, aims to address the persistent high prices of rice.
The DA intends to implement a maximum SRP of P58 per kilogram on imported rice with a 5% broken grain content, a strategy it claims will reduce the retail price of imported rice further.
“Adjustments to the (maximum SRP) may occur every two to three weeks until March,” Mr. Tiu Laurel informed reporters.
“After two to three weeks, we can modify it to P55 per kilo, and perhaps after another two weeks to P52 per kilo. If global prices decline further, it might reach P50 per kilo soon,” he added.
Mr. Tiu Laurel noted that importers and retailers had previously consented to a profit margin of P10 per kilo.
“I have also involved the private sector in this discussion, and we convened with retailers, importers, DTI (Department of Trade and Industry), PCC (Philippine Competition Commission), BIR (Bureau of Internal Revenue), and various stakeholders,” he stated. “This decision to set it at P58 was made collaboratively, not arbitrarily.”
When asked for his opinion, Federation of Free Farmers National Manager Raul Q. Montemayor remarked that there is no necessity to declare a food security emergency concerning rice given the sufficient domestic supply.
“I don’t believe there is a national food security crisis regarding rice. There is no supply shortage, no disaster, harvests are set to resume in March, and while prices remain elevated, they are actually gradually decreasing,” Mr. Montemayor conveyed in a Viber message.
He further commented that the administration has not effectively addressed the issue of price gouging among importers, wholesalers, and retailers.
“Rather than pursuing these individuals, the government has opted to manipulate the law (RA 12708), granting them a legal basis to release NFA stocks to LGUs in an effort to reduce prices,” he added.
In a Viber message, former Agriculture Undersecretary Fermin D. Adriano remarked that the limited amount of NFA stock may not sufficiently impact rice prices.
“The stock is very limited compared to the control held by the rice cartel, which manages approximately 70% of the total supply,” Mr. Adriano remarked. — with contributions from Kyle Aristophere T. Atienza