National rice stock declined in August, PSA says

The National Food Administration’s stock of rice decreased further to settle at 440,000 tons as of Aug. 1, a decline of 3 percent from that of the previous month, as the agency prepared to receive the last shipments from Vietnam.

Data from the Philippine Statistics Authority showed that the present NFA stock would be enough to cover 13 days of consumption, which was below the agency’s mandate of keeping at least 15 days’ worth of supply. Also, the stock held by households and commercial warehouses declined by 20 percent and 16 percent, respectively.

This meant that the national supply of milled rice again fell, this time by 15 percent to 1.72 million tons amid expectations of a longer lean production season due to the late onset of rains for the year’s main crop. The PSA said the overall inventory would be worth 51 days of consumption, which was eight days less than that of July.

Households accounted for about two-fifth of the total stock, or about 21 days’ worth of rice, while commercial warehouses held a third of the stock, or 17 days’ worth of consumption.

Households kept a total of 700,000   tons, while commercial warehouses held 580,000 tons.

The NFA is trying to secure additional supplies through a government-to-government process following an unsuccessful open tender last August for 500,000 tons. The Office of the Presidential Assistant for Food Security and Agricultural Modernization is trying to keep imports flowing this month, but bids from interested suppliers went over the NFA’s approved budget.

The plan was for 200,000 tons to be delivered within the month, another 200,000 tons in October and the remaining 100,000 tons in November.

The agency, under Secretary Francis Pangilinan, has increased the release of NFA rice to 10,000 tons a day, from 6,000 tons, as it tried to bring down retail prices. Commercial rice, or those coming from private sector suppliers, has reached a high of P45 a kilo in certain areas of Metro Manila.

Well-milled rice from the NFA sells at P32 a kilo, while regular milled rice fetches P27 a kilo.