Press Release
April 4, 2018

To help address shortage in supply of cheap rice
NANCY TO NFA COUNCIL: ALLOW NFA TO BUY PALAY AT P18/kl FROM LOCAL FARMERS

Following reports that the National Food Authority (NFA) has run out of rice to sell, Sen. Nancy Binay today urged the inter-agency NFA Council to allow the NFA to buy palay from local farmers at a higher price to boost the grain agency's rice reserve.

"Napipilitan pong bumili ng mas mahal na bigas ang ating mga kababayan dahil walang NFA rice na mabili sa mga palengke, kaya nananawagan po ako sa NFA Council na payagan na ang pagbili ng palay sa mas mataas na presyo upang ma-replenish ang stock nito ng bigas," Binay said.

This is the first time since 1972 that the government has totally run out of subsidized rice.

The NFA at the present buys palay from local farmers at P17 a kilogram, while middlemen and traders offer P19-P21 per kilo at farm gate prices.

"Mahina ang bargaining position at hindi talaga makakapag-offer ang NFA ng magandang presyo sa ating local farmers kung ang kaya lamang nilang presyo ay P17 sa bawat kilo ng palay," she added.

Binay said that during the last Senate hearing on the issue of NFA rice, it was proposed that the NFA Council grant an additional peso to the existing NFA buying price.

"Ang sabi noong nakaraang hearing na competitive na yung proposed P18 na buying price ng NFA, so I think it would be prudent for the NFA Council to immediately grant the needed adjustment," Binay said.

The NFA sells rice at P27/kg and P32/kg, while a comparable commercial rice variety sells at a higher price of P36/kg to P41/kg.

"Kung makakayang tapatan ng NFA ang presyo sa farm gate, mas matutulungan pa natin ang mas maraming local farmers at mami-maintain natin ang required 30-day buffer stock," she added.

Binay maintained that the NFA has a mandate to maintain at least a 15-day buffer stock at any given time and 30-day buffer stock during the lean season, which usually starts in July until September.

"Kung ganitong ubos na ang stock ng NFA rice ay hindi na sumusunod ang NFA sa mandato nitong magkaroon ng buffer stock," Binay said.

The senator noted that once the NFA be allowed to buy palay at P18/kilo, local farmers will be more than willing to sell their harvests to the government.

"Ang NFA ay inaasahan ng ating mga kababayan lalung-lalo na sa panahon ng sakuna na magsu-supply ng mas murang bigas, pero hindi natin naibibigay ang tamang suporta upang magawa nito ang mandato nito," she added.

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