Agriculture secretary Francisco P. Tiu Laurel Jr. declared on Monday a food security emergency on rice through memorandum circular 03, following the approval from the National Price Coordinating Council (NPCC).
He said an “extraordinary” rise in local rice prices, which have remained high despite lower global prices and a reduction in rice tariffs implemented in July, prompted the emergency declaration.
“This emergency declaration allows us to release rice buffer stocks held by the National Food Authority (NFA) to stabilize prices and ensure that rice, a staple for millions of Filipinos, remains accessible to consumers,” Tiu Laurel said. The declaration was made one day ahead of the schedule announced last week by the DA.
The decision follows the NPCC’s assessment that despite declining global rice prices and import rice tariff reduction from 35 percent to 15 percent in July, local prices have remained stubbornly high.
According to data from the Philippine Statistics Authority (PSA), rice inflation soared to 17.9 percent in September 2023, far surpassing the government’s target of 4 percent for food inflation.
The cost of regular and well-milled rice rose by 19 percent and 20 percent, respectively, compared to the previous year. In July 2023, rice inflation was just 4.2 percent.
Under Republic Act No. 12078, an amendment to the Rice Tariffication Law, the Agriculture secretary has the authority to declare a food security emergency in response to extraordinary price increases.
This allows the DA chief to direct the NFA, which is legally restricted from selling rice directly to the public, to release buffer stocks to government agencies, local government units, and the KADIWA ng Pangulo program.
The goal is to stabilize rice prices and protect consumers from further price hikes.
Currently, the NFA holds around 300,000 metric tons of rice in buffer stock, half of which could be released over the next six months to ensure adequate supply for emergencies and disaster response.
The NFA may increase this volume if needed as it prepares to begin palay procurement in the coming weeks.
The food security emergency will remain in effect until the situation improves, with the government pledging to regularly review the situation and lift the emergency once conditions stabilize.
Editor’s Note: This is an updated article. Originally posted with the headline “DA declares food security emergency.”