National Food Authority’s Rice Stockpile Falls Short of Emergency Requirements: Only Two Days’ Worth
The National Food Authority (NFA) in the Philippines is facing a critical shortage of rice stockpile, with their inventory only lasting for two days, according to the agency’s report. This falls significantly short of the minimum requirement for emergencies and calamities, which should ideally be nine days’ worth. As of the end of June this year, the NFA’s buffer stock stood at just 1.22 million bags or 60,819.95 metric tons (MT).
Based on the agency’s average daily sales of 26,085 bags, their inventory could last for 47 days. However, this figure is still far from the ideal buffer stock needed to ensure food security in times of crisis.
The NFA’s June inventory is substantially lower than the 3.14 million bags or 157,154.85 MT recorded during the same period last year, equivalent to 4.68 days’ worth. This decline raises concerns about the country’s ability to cope with emergencies and other unforeseen events that may disrupt the rice supply.
To address this issue, the Marcos administration is contemplating whether to import rice through a government-to-government (G2G) arrangement. Agriculture Assistant Secretary Rex Estoperez revealed that they are considering a G2G deal with India, among other options, to stabilize domestic supply and prevent further increase in prices.
Several factors will influence the decision, including the impact of recent weather disturbances on the local industry, the required volume of rice for importation, and price fluctuations in the global market. The private sector can also import rice, albeit at higher prices.
The Rice Tariffication Law (RTL) allows the president to authorize rice importation at a lower tariff rate in the event of an imminent or forecasted shortage. However, this can only be done when Congress is not in session. The NFA’s mandate, on the other hand, is limited to maintaining a sufficient rice buffer stock for emergencies and supporting disaster relief programs, relying solely on local farmers for supply.
The increase in rice prices adds to the concerns faced by consumers. As of Monday, locally produced rice costs between P37 to P60 per kilogram, whereas imported rice ranges from P44 to P58 per kilogram. These prices are higher compared to the previous year.
To ensure food security and stabilize prices, it is crucial for the government to take immediate action in addressing the country’s rice shortage. Importation, particularly through G2G arrangements, can help bridge the gap between supply and demand. Furthermore, maintaining a higher buffer stock is essential to safeguard against emergencies and calamities that may disrupt the rice supply chain.
The government must prioritize the welfare of its citizens by implementing measures that promote long-term food security and affordability. By considering various perspectives and opinions, a holistic solution can be developed to address the current rice stockpile inadequacy in the Philippines.
