1 month ago
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The Department of Agriculture (DA) declared on Monday, Feb. 3, a food security emergency on rice as prices for the commodity remain stubbornly high.
Agriculture Secretary Francisco Tiu Laurel said the declaration was prompted by the "extraordinary” increase in local rice prices despite the government’s reduction in tariffs last year and the lower global market costs.
Under this, the National Food Authority (NFA) is authorized to release rice buffer stocks in a bid to stabilize prices.
“Despite efforts to liberalize rice imports and reduce tariffs, the domestic market has been slow to respond, with retail prices surpassing expectations,” Laurel said,
“This volatility has left many Filipinos, particularly those in lower-income brackets, struggling to afford rice,” he stressed.
Laurel, through Department Circular (DC) No. 03, said it is critical for the agency to act urgently to ensure that rice remains accessible for Filipinos.
His decision follows a resolution approved by the National Price Coordinating Council (NPCC) on Jan. 16 recommending the need for a declaration.
Citing figures from the Philippine Statistics Authority (PSA), the NPCC noted that rice inflation jumped to 17.9 percent in July 2023, far exceeding the government’s target of four percent for food inflation.
It likewise referenced data in December 2024, which stated that the cost of regular and well-milled rice remained high, with increases by 19 percent and 20 percent, respectively, compared to that of the previous year.
The NPCC, headed by Department of Trade and Industry (DTI) Secretary Cristina Roque, identified the "extraordinary" nature of the price increases, which prompted Laurel’s move.
The authority to declare a food security emergency was granted to the Agriculture Secretary under Republic Act (RA) No. 12078, which amended the Rice Tariffication Law (RTL).
The law, signed in December of last year, also permits Laurel to direct the NFA to release its buffer stocks to the Kadiwa ng Pangulo (KNP) program, local government units (LGUs), and other government agencies.
Without a declaration, the NFA is legally restricted from selling rice directly to the public.
The NFA currently holds a buffer stock of approximately 300,000 metric tons (MT) of rice.
About 150,000 MT of this stock is expected to be released over the next six months, prioritizing areas near warehouses to minimize freight costs. However, if necessary, the NFA may increase this volume.
Releasing these reserves is expected to help decongest warehouses in preparation for the upcoming February harvest.
With the upcoming rice harvest season, the NFA is set to procure palay or unmilled rice at P23 per kilo.
The declaration of a food security emergency is anticipated to bring some relief to consumers, with potential price reductions of P3 to P5.
Laurel said the food security emergency will remain in effect until the situation improves, although the government has committed to regularly monitor the situation to determine when it can be lifted.
