THE Department of Agriculture (DA) will begin selling well-milled rice stocks from the National Food Authority (NFA) at P33 per kilogram, following the declaration of a food security emergency for rice.
NFA acting department manager Roy Untiveros said this price is P2 lower than the initial target price of P35/kg for local government units (LGUs), other government agencies, and government-owned and -controlled corporations. The selling price was slightly adjusted to expedite the release of NFA rice stocks.
“We really have to release the stocks of NFA so we can create more space to accommodate incoming palay deliveries from the farmers,” Untiveros stated, despite the estimated loss of P12/kg to P15/kg or P1.8 billion to P2.2 billion for the NFA due to the lower price.
The NFA needs to release 150,000 metric tons or 150 million kg of well-milled rice stocks over the next six months.
Untiveros clarified that the DA, through Food Terminal Incorporated, will be responsible for selling the rice and will receive a P33/kg profit from LGUs.
“Republic Act 12078 clearly states that the NFA is not authorized to sell its stocks. It clearly says that the DA may sell the NFA stocks,” Untiveros explained, referring to the DA’s role in replenishing or adding to the stocks in return.
The NFA and LGUs are working together to distribute rice stock allocations.
“We have sent 53 letters. We are waiting for the LGUs’ replies so we can determine who is interested in participating,” Untiveros said.
Currently, LGUs in Metro Manila and Cavite have expressed their intention to receive NFA rice stock allocations.
NFA rice stocks will be available at Kadiwa ng Pangulo centers and kiosks in Metro Manila until the second week of February.
