In a strategic move to alleviate warehouse congestion and support local farmers, the Department of Agriculture (DA) in the Philippines has initiated the rapid disposal of rice stocks held by the National Food Authority (NFA). This action follows a food security emergency declaration and aims to expedite the purchase of palay from local farmers at a favorable price of PHP23 per kilogram during the peak harvest season.
Agriculture Secretary Francisco Tiu Laurel Jr. emphasized the urgency of the situation during a press conference at an NFA warehouse in Valenzuela City. He highlighted the need to clear space in warehouses across the country, which are currently filled to capacity. The target is to dispose of 150,000 metric tons of rice within the next six months.
The initiative involves distributing the rice to selected local government units (LGUs), which can then sell it to consumers at a subsidized rate. The NFA rice is priced at PHP33 per kilogram for LGUs, government agencies, and government-owned corporations, with a suggested retail price of PHP35 per kilogram to the public.
Several LGUs, including San Juan, Valenzuela, Navotas, and Camarines Sur, have already expressed interest in participating in the program. San Juan Mayor Francis Zamora, also the Metro Manila council president, expressed enthusiasm about the program, noting that it would provide residents with more affordable rice options. San Juan plans to absorb logistics costs to maintain the lowest possible price for its citizens.
To participate, LGUs must submit a letter of intent and a purchase order to the Food Terminal Incorporated (FTI), along with a memorandum of agreement with the DA. The FTI offers credit terms to LGUs, with payments due within 30 days of receiving the rice stocks.
The NFA has set monthly allocation targets for participating LGUs, with Metro Manila, Cavite, and Rizal receiving the largest share at 293,000 bags per month. Other regions, including Calabarzon, Mimaropa, Bicol, and various parts of Visayas and Mindanao, will receive allocations based on their population and needs.
This initiative not only aims to free up warehouse space but also to ensure that local farmers can benefit from the current buying price of palay, thereby boosting the agricultural sector during a critical time.