Manila: The Department of Agriculture (DA) is optimistic that the PHP20 per kilogram rice sale, involving the 'high quality' soon-to-age and aging stocks of the National Food Authority (NFA), will contribute to further controlling rice inflation in the Philippines.
According to Philippines News Agency, this initiative follows a notable decrease in the rice index, which contributed to a slowdown in food inflation. The inflation rate eased to 0.7 percent in April from 2.3 percent in March and a steeper 6.3 percent in April 2024, as reported by the Philippine Statistics Authority (PSA). The PSA highlighted a significant year-on-year drop in the rice index by 10.9 percent from a 7.7 percent decline in March.
In a recent Zoom interview, Agriculture Deputy Spokesperson Assistant Secretary Joycel Panlilio expressed that the reduced price of rice could potentially influence retail market prices. The PHP20 per kg. rice program, called 'Benteng Bigas Meron (BBM) Na' rice, was launched at the Kadiwa ng Pangulo (KNP) Center in Cebu on May 1. It is set to expand to 19 KNP sites in Metro Manila starting May 13.
Panlilio noted, "We're hoping na dahil may mababang presyo sa merkado na tatangkalikin ng ating vulnerable sector ay inaasahan natin na sana ay magkaroon tayo ng pagbabago ng presyo sa PHP45 na prevailing price natin." This translates to a hope that the cheaper price in the market for the vulnerable sector will lead to changes in the prevailing PHP45 rice price.
As per DA Bantay Presyo (price watch), the current prevailing prices for imported premium and well-milled rice in Metro Manila stand at PHP45 per kg, while imported regular-milled rice is priced at PHP40 per kg. The price range for premium imported rice is between PHP43 and PHP55 per kilo; imported well-milled rice ranges from PHP38/kg to PHP48/kg; and imported regular-milled rice is between PHP35/kg to PHP45/kg.
Local rice prices vary, with premium rice ranging from PHP44/kg to PHP60/kg, well-milled rice from PHP40/kg to PHP50/kg, and regular-milled rice from PHP34/kg to PHP43/kg. Their prevailing prices are set at PHP50/kg, PHP45/kg, and PHP40/kg, respectively.
Panlilio added, "Nakita naman po natin iyong downward trend ng ating rice inflation dahil din ito sa ginagawang hakbang ng DA kaya po nagkaroon din po ng magandang resulta iyong ating economy at bumaba iyong ating inflation."
Efforts by the government to manage rising rice prices include implementing a maximum suggested retail price for 5 percent broken imported rice, declaring a food security emergency for rice, continuous operations of Rice for All and P29 programs, and reduced tariffs on imported rice.
Tiu Laurel has reiterated the need to restore some of the NFA's powers to ensure effective market intervention and support for local farmers through sustainable palay procurement. Before the Rice Tariffication Law (RTL), the NFA had the authority to sell rice directly to retail markets and import rice for supply augmentation and national buffer stocking. However, the law has since limited the NFA's role to securing national rice buffer stock for emergencies.
Currently, the NFA holds over 7.7 million 50-kg bags of milled rice, sufficient for a 10-day national buffer stock.