Palace: NFA’s abolition ‘being considered’
THE ABOLITION of the National Food Authority (NFA) is currently “being considered” amidst supply shortage of lowcost rice in the country, NFA Council Chairperson Leoncio B. Evasco, Jr. said in Malacañang on Wednesday.
Mr. Evasco, in his press briefing, also said, “Iyong pagbuwag ng NFA, nandiyan pa iyan sa Congress.” (The proposed abolition of the NFA is in Congress.)
He added that “there are already discussions as to the nittygritty of such (a) bill that should be approved.”
A bill on reorganizing the NFA and amending its mandate is currently pending at the Senate committee on agriculture and food, and has also been referred to the committee on government corporations and public enterprises. The House also has a counterpart bill pending in its committee on agriculture and food.
Mr. Evasco cited two conditions for the agency’s abolition.
“The NFA could only be abolished, first, if we have enough rice produced in our country to feed our people. Second, if we follow the proposal of the Department of Finance (DoF) to do away with the quantitative restrictions, definitely mawala iyong NFA because we will now allow private traders to buy and sell this rice here in our country.”
In a text message to BusinessWorld, Senior Deputy Executive Secretary Menardo I. Guevarra said the matter may also “be taken up” at the Cabinet meeting on Wednesday evening.
However, it is “not in the agenda,” Mr. Guevarra added.
Mr. Evasco also clarified reports that the supply of NFA rice has “been wiped out,” saying the buffer stock of rice has “not yet” reached zero.
“Wala pa naman, wala pa (not yet). It’s 0.35,” Mr. Evasco said, adding: “We have to proactively think about it. In fact, I have to meet the Council members about this because this is a new development.”
Mr. Evasco said the 0.35 day or about 8 hours worth of lowcost rice stocks is equivalent to 200,000 bags.
The NFA management is mandated to maintain at least a 15-day buffer stock or around 400,000 metric tons (MT) of NFA rice at any given time.
During the lean season, the agency is required to maintain a 30- day buffer stock which is equivalent to 800,000 MT.
Mr. Evasco also accused the NFA management of issuing “irresponsible statements” on the status of the agency’s rice supply.
It is “obvious” that the NFA management is liable for the public panic, Mr. Evasco added.
Mr. Evasco reiterated President Rodrigo R. Duterte’s order that there should be only one person to speak about the status of the NFA rice to “avoid creating panic.”
He added that the President would meet with rice traders today.
Some lawmakers on Tuesday, April 3, including Senator Grace Poe-Llamanzares called for the resignation of NFA Administrator Jason Laureano Y. Aquino, saying that “if there is indeed a zero percent buffer of rice, this indicates the inefficiency of his leadership.”
Mr. Evasco said the Council has not made a position on the matter. “If there are some sectors calling for his removal, it should be the President who should react to that because it is the President who appointed him. In fact, I should keep silent on that because it’s not mine to comment on that. Mine as the Chair of the NFA Council is to guide the discussion that it is true to the mandate set by law.”
The Council, according to Mr. Evasco, passed a resolution last February “to ask the Commission on Audit (COA) to conduct a special audit, to find out whether the NFA management is buying rice at a proper timing. Meaning to say, whether NFA is buying it at the onset of harvest season; and at what volume they are buying.”
The Council chairman likewise said he has already instructed his assistant secretary to go to COA “tomorrow (April 5) to set the timeframe and the contents of such audit.”