Step up rice pullout from warehouses, NFA appeals to LGUs

Metro Manila, Philippines - The National Food Authority (NFA) has appealed to local government units to pull out rice buffer stocks to clear warehouses for the incoming harvest.

San Juan City was the first to sell NFA rice stocks, but the Department of Agriculture (DA) said on Friday, Feb. 28, that Navotas, Cotabato, and Camarines Sur have yet to pull out their orders, totaling over 120,000 sacks.

The NFA previously said 67 LGUs have expressed interest to buy palay from the agency.

“We appeal to LGUs to fast-track the pullout of rice reserves,” NFA Administrator Larry Lacson was quoted in the news release.

“This will open up space in our warehouses, allowing us to procure more palay and ensure that farmers aren’t at the mercy of traders pushing down prices,” he said

Citing reports, the DA said there were traders buying palay for as low as P15 per kilogram, which was below NFA’s purchasing price of P23 to P24 for clean and dry palay.

The agency added that palay procurement in Mindoro “has been hindered by fully stocked warehouses.”

According to the news release, Agriculture Secretary Francisco Tiu Laurel Jr. has “instructed the NFA and FTI (Food Terminal, Inc.) to facilitate the quick release of rice stocks, including offering easier payment terms for LGUs.”

“This year, the agency needs to procure 545,000 metric tons of palay to maintain a 9-day supply, with a total of 880,000 metric tons needed to meet the 15-day target,” the DA also said.

Local government units can buy NFA rice at P33 per kilogram. They are allowed a markup of P2.