The National Food Authority (NFA) has begun releasing rice stocks to participating local government units (LGUs), which consumers can purchase for as low as ₱33 per kilo, as part of the agency’s mandate under the food security emergency on rice.

During a ceremonial turnover on Wednesday, Feb. 19, at the NFA warehouse in Valenzuela City, Department of Agriculture (DA) Secretary Francisco Tiu Laurel officially handed over the rice stocks to San Juan City Mayor Francis Zamora, who serves as president of the Metro Manila Council.

Aside from the 17 LGUs in Metro Manila, 50 more LGUs across the country have signified their intent to participate as sellers of NFA rice.

“This is just the beginning. We expect more local government units to participate in this effort, which will benefit not only Filipino consumers but also rice farmers,” Laurel said in his speech.

On Feb. 3, the DA declared a food security emergency on rice as prices of the commodity remain stubbornly high.

Under this, the NFA is authorized to release rice buffer stocks in a bid to stabilize prices.

The NFA, the agency responsible for ensuring rice supply’s stability, plans to release around 25,000 metric tons (MT) of rice every month during the emergency.

Since the NFA is restricted from selling rice directly to the public due to the amended Rice Tariffication Law (RTL), the DA will oversee the selling of rice through the state-owned corporation Food Terminal Inc. (FTI).

The FTI, meanwhile, will distribute rice directly to LGUs, as well as the Kadiwa ng Pangulo (KNP) program and other government agencies that want to participate.

The rice will be available for ₱33 per kilo, or ₱1,650 per sack, and is suggested to be sold to consumers at ₱35 per kilo.

However, Zamora said San Juan will no longer impose the additional ₱2, noting that the city will not pass the cost of hauling and logistics to consumers.

Camarines Sur second district Rep. LRay Villafuerte, who was also present at the event, said his province will likewise do the same.

The Agriculture Secretary said the selling of the rice would begin next week, which could be as early as Monday.

While each LGU will have its own guidelines in selling rice, Laurel said the ideal maximum kilogram of rice a consumer can buy should be 50 kilos, or one sack of rice.

Additionally, the DA does not oppose the resale of the said rice, provided the price does not exceed the suggested retail price of ₱35 per kilo.

Laurel noted that participating LGUs can order as much stock as they want given the upcoming harvest season.

“Basically, we need to really unload our stocks as fast as possible, kung ano hingiin ng LGU then (whatever the LGU requests), we will release. Then, we will stop at 150,000 tons,” Laurel told reporters.

“Kung mabawasan ang laman ng warehouses…mamimili na kami ng palay ngayon eh, so itutuloy namin ‘yan hanggang maubos ang almost 300,000 tons,” he added.

(If the warehouse stocks decrease... we're already buying unmilled rice now, so we'll continue until we deplete almost 300,000 tons.)

As it stands, the NFA currently holds a buffer stock of approximately 300,000 MT of rice.

With the decongestion of warehouses, the government is set to procure palay from local farmers at ₱23 to ₱30 per kilo.

When asked about potential price reductions from the release of NFA stocks, Laurel said it would depend on the demand strength.

“If there’s more supply, the law of supply and demand dictates that this will soften the market price,” he explained.

Earlier, the DA estimated that this could bring reductions in rice prices of ₱3 to ₱5 per kilo.