
Citing an “extraordinary increase in rice prices,” Agriculture Secretary Francisco Tiu Laurel has placed the country under a food security emergency by issuing Department Circular No. 3, based on a resolution of the 10-member National Price Coordinating Council (NPCC).
He said that NPCC Resolution No. 01 cited the report of the Philippine Statistics Authority that rice inflation in July 2023 reached 4.2 percent, exceeding the upper limit of the four percent food inflation target under the Philippine Development Plan 2024-2028.
He said rice inflation further increased, reaching 17.9 percent in September 2023.
“The (NPCC) resolution determined that rice prices remain elevated, emphasizing that in December 2024, the price levels of regular milled rice and well milled rice were respectively 19 percent and 20 percent higher compared to the period before the price spikes in July 2023,” Tiu Laurel noted.
With the declaration of the food security emergency, the National Food Authority can start selling its rice stocks at P36 per kilo to local government units, which can resell it at P38 per kilo. At least 300,000 metric tons of NFA rice will be released to the market.
The DA has also implemented a maximum suggested retail price of P58 per kilo after Executive Order 62, which lowered the tariff on imported grains to 15 percent, failed to bring down the retail price of rice. The maximum SRP will further decrease to P55/kg beginning February 5.
The food security emergency mainly allows the NFA to sell to LGUs its rice stocks, which are apparently aging and congested and need to be disposed of. Whether or not it will lead to solutions that will lower the price of rice for the long term, it remains to be seen, as the declaration has not been without its critics.
Our government, through the Department of Agriculture, has so far failed to deliver on its promise of affordable rice. This emergency declaration will hopefully lower prices temporarily while at the same time provide a solution for the mismanaged NFA stocks that are in danger of spoiling whilst rice prices have skyrocketed. Hopefully this is a part of a comprehensive suite of solutions for both the rice industry and the consumer that will provide affordable rice for Filipinos in a manner that benefits all and is sustainable at the same time.*