The next administration can sell cheap rice, not at P20 per kilogram (kg) but at P30, if it revives the role of the National Food Authority (NFA) of selling rice to the market, according to Secretary William Dar of the
Department of Agriculture (DA).
Dar told a forum organized by the Economic Journalists Association of the Philippines yesterday said the NFA’s former practice of selling rice at P27 per kg can be considered as a benchmark by the next administration, raised by P3 or to P30 per kg and to be sold to the poorest of the poor and not the general public.
The Rice Tariffication Law of 2019 reduced the role of NFA to one that maintains buffer stocking of rice from grains sourced from local farmers to be used for calamities and emergencies.
Dar said the incoming government must also provide the NFA with additional budget to have a buffer stock of 60 days.
Dar said to maintain 30 days buffer stock as mandated, NFA will need an additional P23 billion from the current P7-billion budget.
“President Duterte also approved a suggestion for the engagement of provincial local government units (LGUs) to also procure palay and handle their own buffer stocking. We are aiming for the top 20 rice producing provinces. After these elections, we are having a dialogue with the top 20 (rice) producing provinces,” Dar said.
He added under the proposal, these provinces buy their local palay produce guided by farmgate prices with the income to be rolled over by selling them back to the market.
“We are aiming to have additional 30-day buffer stock coming from the engagement from the LGUs. …We are going to target a 60-day buffer stock for the country. India and China have a one -year buffer stock in rice. The buffer stocking and rollover scheme to be sold at a cheaper price in the market is that important,” Dar said.
When asked about the viability of presidential frontrunner
Ferdinand Marcos Jr. campaign promise to lower the price of rice to P20 per kg., Dar said he interpreted that to mean palay.
Dar confirmed he and Marcos had discussions two months ago on his intentions to continue serving as the chief of the DA for the incoming administration.
“I am offering my services to the country and the new leader. If they really consider that, then that will be good. If not, I have many things also to do,” Dar said.
Dar said he would suggest for the recalibration of Masagana 99, a project of former president Ferdinand Marcos Sr., should the next administration revive the program.
“For the Masagana 99, we have to learn lessons as these are all documented. Unsuccessful components should be recalibrated. That’s been formed in terms of enhancing rice production program in the country, its working but it can be strengthened. .. based on analysis and a lot of studies, its strong points should be continued while those that did not work must be recalibrated and strengthened,” Dar said.
