Extra P7B subsidy set for rice stockpile

The The national government has set aside P7 billion of its P3.767-trillion budget for 2018 to enable the National Food Authority (NFA) to procure more unhusked rice or palay directly from local farmers for stockpiling.

The fresh subsidy will allow the NFA to buy an extra 388,889 metric tons (MTs) of palay from local growers at P18 per kilo. The supply will then form part of the country’s Strategic Rice Reserve.

The new funding is in accordance with President Rodrigo Duterte’s directive for the NFA to provide local rice farmers stronger buying support.

The NFA is mandated to keep a Strategic Rice Reserve equal to at least 15 days of national consumption at any given time, and equal to at least 30 days consumption by the start of the lean season on July 1 of every year.

After serving its purpose as stockpile, the NFA then sells the rice to accredited outlets at P30 per kilo to help keep retail prices down and support consumers, especially low-income households.

All told, next year, the NFA intends to procure up to 1.2 MTs of palay from local planters and distribute up to 1.35 MTs of rice.

Based on documents submitted to Congress, the NFA also indicated it may import another 580,050 MTs of rice next year, if needed.

Under the law, obtaining additional rice supplies from abroad is always an option, in case of calamities, fortuitous events, or shortfall in local production.

But we would really prefer that the NFA buys as much palay as possible from local farmers.--