The National Food Authority (NFA) will begin selling cheaper rice in more than 50 local government units next week, following the declaration of a food security emergency, the Department of Agriculture (DA) said Monday.
DA Secretary Francisco Tiu Laurel Jr. said the government is awaiting finalization of documents between the NFA and the Food Terminal Inc. before launching the program.
“Next week, hopefully we can roll out this,” Tiu Laurel said in a briefing at Malacañang.
He said more than 50 LGUs already expressed interest in buying rice stocks from the NFA under the program.
“For now, there are many LGUs which signified their intent, but there’s still a procedure needed to be accomplished,” Tiu Laurel said.
The DA said among the interested LGUs are those in Metro Manila, Calabarzon, Mimaropa, Bicol, Western and Central Visayas, Zamboanga Peninsula and the Davao region.
The NFA earlier said it is ready to release its stocks to LGUs, other government agencies and government-owned and controlled corporations at P33 per kilogram, which may be sold to consumers at P35.
Besides rice stock release under the food security emergency, more spaces are expected to be freed in NFA warehouses, which would allow for more palay buying amid the local harvest season.
The DA said retail rice prices may also be influenced by the availability of P35-per-kilogram well-milled NFA rice.
Tiu Laurel said commercial rice prices may drop to P49 per kilogram by March 1, 2025, as new stocks are expected to arrive from some Southeast Asian countries.
He said the DA held discussions with rice importers, traders and retailers, requesting they reduce rice prices to more reasonable levels.
The current manufacturer’s suggested retail price (MSRP) is P55 per kilogram, following the DA’s approval of the disposal of old stocks.
“By Feb. 15, our MSRP will be P52. By March 1, hopefully, they are able to buy new stocks from Vietnam, Myanmar or Cambodia which are cheaper. So, we are able to come up with an MSRP of P49 by March 1,” Tiu Laurel said.
He also expects the MSRP of premium 5% broken rice to drop from P64 per kg. to P49 by March 1.