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DA hopes to get emergency permission for food security this week.
Agriculture Secretary Francisco Tiu Laurel Jr. aims to have the National Price Coordinating Council (NPCC) approve a national food security emergency declaration this week. This move would allow the Department of Agriculture (DA) to distribute National Food Authority (NFA) rice stocks to government agencies and local government units (LGUs) to help stabilize rice prices. Despite global price reductions and a tariff cut from 35% to 15% ordered by President Ferdinand Marcos Jr., rice prices remain high in some areas. To address this, the NFA plans to release 150,000 metric tons of rice over six months, prioritizing regions with elevated prices. NFA Administrator Larry Lacson stated that releasing 30,000 metric tons per month will help reduce prices while maintaining emergency buffer stocks. Additionally, the NFA will buy palay (unmilled rice) at P23 per kilogram to meet the required 555,000 metric tons of buffer stock for national consumption.
Philippines Eyes National Food Security Emergency to Stabilize Rice Prices
Agriculture Secretary Francisco Tiu Laurel Jr. has announced plans to seek approval from the National Price Coordinating Council (NPCC) for the declaration of a national food security emergency. This move aims to address persistently high rice prices in various parts of the country, despite global price reductions and a significant tariff cut ordered by President Ferdinand Marcos Jr. last year.
The declaration, if approved, would empower the Department of Agriculture (DA) to distribute National Food Authority (NFA) rice buffer stocks to government agencies and local government units (LGUs). This initiative is expected to stabilize rice prices and ensure affordability for Filipino households.
Addressing High Rice Prices
The proposal comes in response to the continued rise in rice prices, which have remained elevated despite efforts to reduce costs. In July 2024, President Marcos Jr. ordered a reduction in rice tariffs from 35% to 15%, aiming to lower import costs and ease the burden on consumers. However, the domestic market has been slow to reflect these changes, prompting the DA to take more decisive action.
NFA’s Role in Stabilizing Prices
NFA Administrator Larry Lacson outlined the agency’s plan to release 150,000 metric tons (MT) of rice—equivalent to 3 million 50-kilogram bags—over a six-month period. This monthly release of approximately 30,000 MT will prioritize areas with the highest rice prices, helping to alleviate costs for consumers.
“This initiative will not only stabilize rice prices but also prepare NFA warehouses for the upcoming palay procurement season,” Lacson explained. He reassured the public that adequate buffer stocks would be maintained to address potential emergencies or disasters.
Meeting Buffer Stock Requirements
Under the amended Rice Tariffication Act, the NFA is required to maintain a rice buffer stock equivalent to 15 days of national consumption, or 555,000 MT. To meet this requirement, the agency plans to purchase palay (unmilled rice) at a price of ₱23 per kilogram during the upcoming harvest season. This procurement effort aims to support local farmers while ensuring sufficient supply for the country’s needs.
The Path Forward
The declaration of a national food security emergency would mark a significant step in the government’s efforts to stabilize rice prices and protect consumers. By leveraging NFA buffer stocks and prioritizing high-price areas, the DA hopes to alleviate the financial strain on Filipino households while supporting the agricultural sector.
As the NPCC reviews the proposal, stakeholders remain optimistic that this initiative will pave the way for a more stable and affordable rice market in the Philippines.
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