State-run grains agency National Food Authority (NFA) said it was ready to play a bigger role in ensuring food security in 2018 after President Duterte proposed that it handle other agricultural commodities aside from rice and corn.
In a statement, the agency said that despite the very low inventory it had throughout the year, it was able to comply with its mandate to ensure food security and stabilize rice supply and prices—proving it can take on other challenges.
To recall, the NFA Council allowed the agency to import only 250,000 metric tons of rice.
NFA Administrator Jason Aquino explained that because of the low volume of importation, the NFA decided to recalibrate its rice distribution system and corporate spending.
This enabled the agency to still respond to local government units’ calls for help during calamities and emergency situations and realize P178.3 million worth of savings.
Nonetheless, NFA is still finding it difficult to buy palay or unmilled rice as private traders continue to buy palay at much higher prices at P18 to P22 per kilogram versus NFA’s buying price of P17 per kg.
The plan to increase NFA’s palay procurement price to empower it to stabilize prices of rice has been pending with an interagency council for two months now. The agency is composed of the NFA, National Economic Development Authority, Bangko Sentral ng Pilipinas, Department of Finance, and the Department of Trade and Industry.
Earlier this year, the President said he was looking to strengthen the agency and give it a bigger role in ensuring national food security.
“The NFA people have always been ready for bigger roles and challenges. We welcome this proposal with open hearts and minds,” Aquino said.
If implemented, the grains agency would be given the authority to run food terminal and convenience stores that would serve as the government’s distribution and marketing arm for agricultural produce all over the country.