AS I HAVE predicted, there would be no buyers for the “aging” stocks of the National Food Authority that it had dumped with local government units and the armed services to sell, during what they called a food security emergency imposed last February.
As of the past weeks, the NFA said it was able to sell only 20,000 bags (of 50 kilos).
Now the NFA and Department of Agriculture said they would auction off said stocks to boost NFA’s available funds so it can procure more palay from local farmers.
DUMPING
During the food emergency, NFA dumped 20,000 bags of aging rice to LGUs and DA planned to expand the allocation to LGUs to 1.35 million bags from the initial 625,600.
Under the amended Rice Tariffication Law (RTL), the NFA should dispose of its aging rice buffer stock through public auction. Aging stocks are rice that has been stored for over two months and one day.
NFA Administrator Larry Lacson said auctioning off old rice stocks would allow the agency to free up space in warehouses and procure more palay from farmers, with its budget of P14.6 billion of which P5.6 billion are carryover funds from last year with its allocation of P9 billion.
He said the NFA can use all these funds provided it could free up storage space in warehouses. The auction price should not be below P30 per kg.
The agency has yet to determine the initial volume to be auctioned, which was set by end of April, he said.
To finance the procurement of more rice, the NFA might ask for additional budget or use the agency’s earnings from the unloading of its existing stocks.
NO CONTROL OVER PRICING
The NFA has procured 2.2 million (50-kilo) bags of palay in the first quarter, equivalent to 110,000 metric tons (MT). As of April 11, its milled rice inventory settled at 7.17 million bags.
NFA targets to buy as much as 880,000 MT of palay to meet its new buffer stock requirement of 15 days of national consumption (up from the previous 9-day buffer) as stipulated under the amended RTL.
Meantime, the Palace is blaming the Senate for blocking efforts to restore NFA’s power over domestic rice prices.
Malacañang said it would push the amendment of the RA12078 (the amended RTL) in the next Congress restoring NFA’s power over the rice market and supply, said Palace Press Officer Claire Castro in a press briefing Monday adding that the Marcos administration has been urging lawmakers to bring back the power of NFA so it can help control the price of rice.
“Actually, the administration has had a proposal for a long time to give the NFA sufficient power,” she said when asked if government economic managers already have a proposed bill for the said reform.
“We want to inform [the public] that if NFA is given the right to sell directly to the people and control the price of rice, the price of rice will not increase like this,” she said.
PRICE BULLETIN
DA’s price bulletin said that local regular milled rice price as of April 15 ranged from P32 to 48 per kg and P38 to P54 per kg for well-milled.
Castro identified Sen. Cynthia Villar as the one blocking the amendments to RA 12078, being the chair of the Senate Committee on Agriculture.
“So you should do your research on how importers benefit, and find out who has the power to import rice,” Castro said.
Last May, President Marcos said he wants NFA to compete with local rice traders and retailers by restoring its power to buy, sell and import rice, which were stripped from NFA under RTL.
NFA is only allowed to sell existing rice buffer stock in areas where there is a shortage or an extraordinary increase in rice prices under RA 12078, which amended RA 11203.
CORRUPTION FROM WITHIN
Among the reasons cited for stripping NFA of such powers was corruption within the agency.
Castro said lawmakers should have considered purging the unscrupulous officials and personnel of NFA and not remove its powers.
To finance the procurement of more rice, the NFA might ask for additional budget or use the agency’s earnings from the unloading of its existing stocks.