Hike in rice prices not supply related – NFA

State-run National Food Authority (NFA) assures there is enough supply of rice nationwide despite the reported price increase in the market.

NFA’s 1.9 million metric tons of rice inventory throughout the country would last for 61 days.

The rice varieties whose prices were observed to have increased by up to P2 per kilogram were of the premium, special and aromatic rice, and not the regular and well-milled varieties which are commonly bought by consumers.

“The reason for the increase in price is that the low-priced stocks held by traders and retailers are starting to be depleted. Traders are now milling and starting to sell their newly harvested stocks bought at higher ex-farm prices,” the grains agency said.

“Traders were buying palay from P18 to P24 per kg and when processed into rice, the higher wholesale and retail prices would be passed on to retailers and consumers,” it added.

NFA said it is normal for prices to increase slightly as the main harvest that started in late September is almost over and lean months will start next month.

For the past three years, prices tend to register an uptick during this period, but this year’s increase is significantly lower than the previous years.

NFA assured it continues to arrest any abrupt increase in rice prices.

“We continue to sell low-priced NFA rice at P27 and P32 per kg through our accredited retailers so consumers have an option to buy good quality, but lower-priced rice,” NFA said.

The agency has also fielded monitoring teams in markets and supermarkets to ensure that NFA rice is available in places where slight rice price increases are noted.

NFA said prices would eventually settle down to its previous levels when private sector imports via the minimum access volume (MAV) quota start arriving next month.