The National Food Authority Council on Monday approved the importation of 350,000 metric tons of rice by major retailers to form part of the country’s rice reserves.
Agriculture Secretary Emmanuel Piñol said the council adopted the proposal of the Department of Trade and Industry provided that “the DTI and its partners will not sell the rice beyond P38 per kilo.”
The council also approved a national procurement program that raises the amount that the government will pay farmers for their palay or unhusked rice.
“The NFA council will no longer tolerate a messy rice industry. We will have to put things in order, we will have to protect the consumers and at the same time, ensure that the farmers are also given their rewards if they produce good quality rice,” he said.
The program, which will be launched Friday, Oct. 12, keeps the P17 per kilo buying price for palay, but adds incentives of P3.70 a kilo to bring the maximum buying price to P20.70 a kilo.
Farmers who sell palay at 14 percent moisture content are entitled to the incentive, while associations or cooperatives that bring in paddy rice will get machinery and farm equipment like tractors, harvesters, and even solar-powered irrigation systems as incentives, depending on the volume.
“All these will be done in provinces where the buying price for palay is low to ensure that farmers will not be disadvantaged even when the government and private sector embark on a huge importation program to stabilize the price of rice in the market,” Piñol said.
All palay procured by the government in 2018 harvest season will be used to beef up the government’s buffer stock for 2019 as part of the program to create well-stocked and stable rice reserves.
During the Monday meeting, the NFA Council also approved the proposal of the Trade department to start a rice distribution program in partnership with the private sector.
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