THE Philippine Confederation of Grains Associations on Thursday relieved speculations rice millers were manipulating the price of rice in the country, saying it was impossible to do that considering the lengthy process involved in rice distribution.
PCGA president Joji Co made the clarification in a television interview after National Food Authority Council chairman Leoncio Evasco claimed rice traders would increase the price of rice now that NFA rice in Metro Manila had been consumed.
Co explained it would take seven to eight channels before consumers would be able to purchase rice.
In a press statement, NFA administrator Jason Aquino, reacting to the call of the NFA Council for an independent audit by the Commission on Audit of the agency’s operations, said “Our documents are ready for scrutiny.”
Aquino said the food agency’s operations were transparent, deploring accusations that there were any irregularities in its rice distribution activities as insinuated by some groups.
The NFA Council is questioning NFA management why it released a lot of its rice stocks during the harvest season from October to December while distribution was low during the lean months of July to September.
It is not correct to say that NFA’s rice distribution was high during the harvest season and low during the lean months, NFA said.
It added: “Over the last 10 years, records show that NFA rice distribution was in fact lowest in 2017 at 14 million bags. NFA rice distribution was highest during the rice crisis in 2008 at 40.5-million bags.
“In 2009, total rice releases was recorded at 37.4-million bags; 35.1-million bags in 2010; 22.2-million bags in 2011; 15.3-million bags in 2011; 15.1-million bags in 2012; 26.4-million bags in 2014; 18.8-million bags in 2015; and 22.9-million bags in 2016. The low distribution rate in 2017 was due to the agency’s depleting stocks.”
Part of NFA rice releases in October, November and December went to the relief agencies such as the Department of Social Welfare and Development, Office of Civil Defense and local government units for their relief operations totaling 292,848 bags, it said.
Total rice issued for relief operations in 2017 was 784,429 bags.
Aquino explained the government contracted 250,000 metric tons imported rice in 2017 started arriving in the country only on the last week of August.
Thus distribution during the lean months was calibrated due to low inventory, it said.
With the arrival of fresh buffer stocks, NFA said it had to release older stocks to its network of accredited retailers nationwide to avoid deterioration.
This is in line with the agency’s total quality management program, it added.
“There are more than 10-million marginalized Filipinos who are dependent on government subsidized rice. As part of our stabilization mandate, we have to continue distributing rice at any given time to be able to respond to the high demand for cheap rice as the price of commercial rice started to increase along with other commodities,” Aquino said.
“We also have to serve the rice requirements of island provinces and municipalities and critical areas like Batanes, Romblon, Masbate, Tawi-Tawi and Basilan that are 60-80 percent dependent on NFA for their rice supply,” Aquino explained.
He said “As early as January 2018, NFA has been prudently allocating the remaining rice stocks in its warehouses to where it is most needed. The order of priority are: relief agencies, LGUs, government institutions, non-government organizations and accredited retailers.”