The National Food Authority (NFA) Council is selling aging buffer rice stocks via the various Kadiwa rolling stores for only P29 a kilo.
But the sale is only for a limited period and meant for the vulnerable such as persons with disabilities, solo parents, senior citizens and later, the indigenous peoples in 6.9 million households across the country estimated to number 34 million individuals.
The program is set for rollout early in July when beneficiary households are entitled to 10 kilos a month.
Agriculture Secretary Francisco Tiu Laurel Jr. said pursuing the program, given the target volume, procurement cost and selling price, will cost the government from P1.39 billion to P1.53 billion a month.
To ensure supply, the DA plans rice imports of 363,697 MT and buy from local farmers palay of another 559,535 MT equivalent to the volume of proposed imports.
Securing the buffer to cover 19 days of consumption will cost at least P28.39 billion, the DA said.
Secretary Tiu Laurel gave assurance the aging stocks for release under the Bigas-29 program are fit for human consumption.
Assistant secretary and DA spokesperson Arnel de Mesa told reporters the proposed importation is subject to government clearance.
“We have two approaches here. One on the adoption of amendments to the Rice Tariffication Law and second, an Executive Order allowing the DA to do this under the Price Act,” de Mesa said.
Tiu Laurel also said the Cabinet will discuss a proposed EO reducing the import duty on rice amid agricultural stakeholders’ apprehension over the impact of proposed tariff reduction.
The DA said despite the National Economic and Development Authority board decision to reduce the rice tariff to 15 percent from 35 percent, no such EO has been issued, giving stakeholders in the agricultural sector a window of opportunity to voice their concern.
Tiu Laurel has acknowledged those apprehensions and emphasized the need for periodic reviews instead of a fixed rice tariff cut until 2028.
“In our discussions with industry representatives, suggestions ranged from reviewing the tariff every six months to one year, or even every four months,” Tiu Laurel said.
Earlier, the United States Department of Agriculture (USDA) forecast rice imports this year and next reaching 500,000 MT, making the Philippines the world’s leading rice importer.
