In a recent statement from Burauen, Leyte, President Ferdinand R. Marcos Jr. has thrown his weight behind the proposal to declare a food security emergency as a strategy to reduce the soaring prices of rice. He pointed out that despite the government’s efforts, the market dynamics are not functioning as they should, leading to persistent high prices. Marcos highlighted that even with reduced inputs, the selling price of rice remains elevated, disrupting the normal demand and supply curve. He stressed the necessity to enforce lower prices and ensure the market operates smoothly, free from the frictional costs and illegal activities currently under investigation by Congress. The National Price Coordinating Council (NPCC) is set to officially forward its recommendation to the Department of Agriculture next week. Agriculture Secretary Francisco Tiu-Laurel Jr. has confirmed that a food security emergency will be declared by the end of January, following the NPCC’s advice, to manage the escalating retail prices of rice. This declaration will allow the National Food Authority (NFA) to distribute its rice stocks at reduced prices to local government units and other agencies, clear space in NFA warehouses, and support local farmers by buying palay during the upcoming harvest season. Tiu-Laurel also plans to suggest a ‘hybrid’ tariff on rice to further control prices. In June 2024, President Marcos issued Executive Order 62, which lowered the rice tariff from 35% to 15%. Currently, the NFA holds nearly 300,000 metric tons of rice, available for sale to government entities. The Rice Tariffication Law restricts the NFA’s role to procuring palay from local farmers to maintain a national rice buffer stock during emergencies, with recent amendments increasing the target procurement volume to cover 15 days of supply, up from nine days.
President Marcos Jr. Endorses Food Security Emergency to Tackle High Rice Prices
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