NFA eyes additional rice imports

Apart from the expected 500,000 metric tons (MT) of rice arriving until August, state-run National Food Authority (NFA) is considering the procurement of additional inventory amid President Duterte’s order to increase its mandated buffer stock requirement.

Committee on Government-to-Government Procurement chairperson and NFA deputy administrator Judy Carol Dansal said NFA will likely recommend additional importation as the 500,000 MT of rice will only be good for 15 days.

“We may expect more on top of the 500,000 MT. That is what is really needed. It will be discussed by the Council. What is more important to us right now is to at least bring these (initial) stocks,” she said.

An NFA source, who refused to be named, disclosed that approximately 300,000 to 500,000 MT of additional rice will likely be imported.

However, this may not happen right away as global market prices remain high.

“We will really recommend to have additional importation once prices start to lower down. Probably, anytime in the fourth quarter,” the source said.

“We can already survive with the expected arrival of the initial 500,000 MT. This will already have an effect in the market,” the source added.

Last month, the United States Department of Agriculture (USDA) said the Philippines is expected to import more rice this year as local production will still not be able to cover the national demand for the country’s main staple.

The USDA Foreign Agricultural Service said the Philippines will likely import 1.4 million MT of rice this year, up by 17 percent from last year’s 1.2 million MT.

Meanwhile, the NFA said it will push for the additional importation as the President earlier directed the agency to increase its food security reserve from the current 15 days to 60 days at any given time to avoid another situation of depleted stocks from happening.

“The President made the announcement and we respect that and we will really look into how to satisfy that,” Dansal said.

“When the President makes the pronouncement, the government agencies concerned will consider that and discuss. NFA is not the only one to decide,” she added.

The Legislative-Executive Development Advisory Council requires NFA to have 15 days buffer stock at any given time and 30 days at the onset of the lean season to ensure that rice supply and prices are stable.

However, NFA has been failing to fulfill its 15-day mandate since late last year amid low palay procurement. Until now, NFA buffer stock can barely last for one day.