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Saturday, February 15, 2025

President set to declare food security emergency

Says move to force down rice prices amid market manipulation

President Ferdinand “Bongbong” Marcos Jr is set to declare a food security emergency to bring down rice prices and push back against market manipulators and profiteers.

Mr. Marcos said he is just waiting for the recommendation of the National Price Coordinating Council (NPCC) next week in response to persistently high rice prices.

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“The reason that we are doing this is because we have done everything to bring down rice prices but the market is not being allowed to work properly,” the President said

“The demand and supply curve is not followed because until now, even if you lower all inputs, prices remain high. And so, we have to force that price down and we have to make sure that the market works properly without friction cause by several factors, including some that are illegal and which are now being investigated by Congress,” he added.

Agriculture Francisco Tiu-Laurel Jr. on Thursday announced that upon the NPCC’s recommendation, a food security emergency would be declared before the end of the month to address the surge in retail prices of rice.

Tiu-Laurel said the declaration would enable the National Food Authority to sell rice stocks to local government units and other government agencies at a lower price, free up space in NFA warehouses, and help local farmers through palay procurement for the upcoming harvest season.

He said he would also recommend the implementation of “hybrid” tariff on rice, as part of the efforts to lower the price of the staple.

Under Executive Order 62 issued by Marcos in June 2024, the tariff on imported rice was reduced from 35 percent to 15 percent.

To date, the NFA has nearly 300,000 metric tons of rice stocks, which can be sold to LGUs and other government agencies.

Tiu Laurel also said the price ceiling and the suggested retail price for NFA rice will be set at P35 per kilo starting in March.

“In March, we will reduce the price to P33 per kilo in Metro Manila and other major cities across the country,” he said.

Earlier this week, Sultan Kudarat Rep. Horacio Suansing Jr. flagged significant discrepancies in rice importation records involving Davao-based businessman Stewart Santiago and his companies, Nance II AgriTraders and Davao Solar Best Corporation.

Suansing called on the Bureau of Internal Revenue (BIR) and the Philippine Competition Commission (PCC) to investigate the matter.

“Per BOC records, Nance II and Davao Solar Best imported a total volume of 348,011 metric tons. But the problem, Mr. Chair, as per BPI data, they were only issued SPSICs for 48,852 metric tons. There is a discrepancy of 299,159 metric tons. There’s a discrepancy,” Suansing said.

Suansing noted that Nance II AgriTraders and Davao Solar Best collectively control about 10 percent of the country’s rice imports.

Editor’s Note: This is an updated article. Originally posted with the headline “Gov’t awaits NPCC nod to declare food security emergency.”

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