LOCAL government units (LGUs) should speed up the pullout of rice stocks from the National Food Authority (NFA) to free up valuable storage space, the NFA said yesterday, February 28.
The NFA is selling rice at P33 to P35 per kilo to LGUs under the food security emergency declared by the government to help bring down rice prices.
NFA Administrator Larry Lacson said LGUs should hasten getting their rice stocks from the Department of Agriculture’s Food Terminal Inc. so the agency can have more storage space for the rice it plans to buy from farmers.
Lacson said that the NFA’s storage capacity is nearly at its limit and that the pullout of rice stocks would not only free up space but also support the NFA in stabilizing prices, preventing the exploitation of farmers by middlemen and traders.
“We appeal to LGUs to fast-track the pullout of rice reserves. This will open up space in our warehouses, allowing us to procure more palay and ensure that farmers aren’t at the mercy of traders pushing down prices,” Lacson said.
According to the NFA, it has received reports that traders are purchasing palay as low as P15 per kilo, which is far below the NFA’s purchasing price of P23 to P24 for clean and dry palay. This could make farmers lose around P4,100 per hectare, it said.
“Of particular concern is Mindoro, where NFA palay procurement has been hindered by fully stocked warehouses. The NFA plans to build a new warehouse in Mindoro to increase capacity, though it may not be ready until next year,” the agency said.
The NFA said Agriculture Secretary Francisco P. Tiu Laurel Jr. also ordered it and FTI to facilitate the quick release of rice stocks, including offering easier payment terms for LGUs. The agency said clearing out existing rice stocks is crucial to meeting the country’s new buffer stock levels, as mandated by the Rice Tariffication Law (RTL).
The NFA also noted that under the amended RTL, it is required to maintain a buffer stock for 15 days. (ABS-CBN News)
