The National Food Authority (NFA) is appealing to participating local government units (LGUs) to accelerate their procurement of rice stocks as part of the mandate under the food security emergency on rice.

In a statement on Friday, Feb. 28, NFA Administrator Larry Lacson called on LGUs to aid the agency in expediting the decongestion of valuable storage space in its warehouses across the country.

"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," said Lacson.

Earlier this month, the Department of Agriculture (DA) declared a food security emergency on rice as prices of the commodity remain high.

With this, the NFA is authorized to release rice buffer stocks to help stabilize prices.

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.

These rice stocks will be sold to the public at ₱33 to ₱35 per kilo.

Last week, San Juan City started pulling out NFA stocks, with its initial purchase of 1,000 sacks of rice already soldout last Monday.

Navotas, Cotabato, and Camarines Sur are expected to follow suit, with pending orders for over 120,000 sacks of rice.

The urgent need to free up space stems from the NFA’s intent to procure palay (unmilled rice) from local farmers in the upcoming harvest season, protecting them from alleged exploitation by certain middlemen and traders.

The agency has received reports that traders are buying palay for as little as ₱15 per kilo.

This is far below the NFA’s purchasing price of ₱23 to ₱24 per kilo for clean and dry palay.

With the national average production of 4.1 tons per hectare, the agency estimates that every peso change in palay prices can significantly impact farmers’ earnings, either adding or subtracting ₱4,100 per hectare.

Moreover, Lacson noted that clearing out existing rice stocks is crucial to meet the country’s buffer stock levels, as indicated in the amended RTL.

Under the law, the NFA is required to maintain a buffer stock for 15 days.

This year, the agency must procure 545,000 metric tons (MT) of palay to sustain a nine-day supply. Meanwhile, 880,000 MT is needed to meet the 15-day target.