NFA Council defers 250,000 MT rice imports

MANILA, Philippines — The inter-agency National Food Authority Council has deferred the importation of  250,000 metric tons (MT) of rice despite the grain agency’s depleting stocks.

“The council said there is enough supply outside of NFA, in households and commercial warehouses. So they deferred rice importation plans but there is no reason to be alarmed,” an NFA source said.

According to the NFA, there is more than enough supply in the commercial market. Total national inventory is good for 89 days.

However, data showed that NFA stocks might  only last for three days when it is supposed to have a 15-day buffer stock.

Despite the council’s decision to defer importation, NFA said it would continue to push for it to boost its inventory.

“We will re-submit our proposal, hopefully within the week. We will include additional considerations why we should push through with it,” the source said.

NFA said there is a possibility that private traders will use the higher oil prices under the Tax Reform for Acceleration and Inclusion (TRAIN) law as a justification to increase prices of commercial rice.

When this happens, NFA should be ready to supply enough rice in the market to stabilize the situation.

NFA has limited supply of rice due to its failure to meet its local procurement target of about three million bags in 2017 due to the higher prices offered by private traders of up to P25 per kilogram compared to its buying price of P17 per kg.

The agency was only able to purchase 587,748 bags or 19 percent of the target.

Meanwhile, Farmgate prices of paddy rice started on a high note this year, posting a seven percent jump in the first week of the month, the Philippine Statistics Authority (PSA) said.

In its first update on palay, rice and corn prices this year, PSA said the average price of palay went up to P19.01 per kilogram from P17.79 per kg last year.

Farm gate prices of white corn grain increased by 46 percent to P15.93 per kg. Week-on-week, prices were also up one percent.

Prices of yellow corn grain likewise picked up by 14 percent to P12.59 per kg and rose by a percentage point on a weekly basis.

The average wholesale price of well-milled rice went up three percent to P39.41 per kg year-on-year. Week-on-week prices were also up 0.36 percent.

On the other hand, the average retail price of well-milled rice rose two percent  to P42.35 per kg.

The wholesale price of regular-milled rice increased four percent to P35.82 per kg.  Its average retail price also rose three percent to P38.15 per kg.

The average wholesale price of yellow corn grain grew by 10 percent to P18.73 per kg.

Retail price of yellow corn grain also inched up one percent while wholesale and retail prices of white corn grain climbed 27 percent and 15 percent to P19 per kg and P29.52 per kg, respectively.