MANILA, Philippines – President Arroyo announced yesterday that NFA rice will now also be also sold at public schools in depressed areas in the country.
In an interview at an NFA warehouse in San Jose, Occidental Mindoro, she ordered local authorities nationwide not to let checkpoints hinder the movement of rice and food delivery trucks to ensure smooth distribution and prevent possible extortion.
“There will be no flag down of trucks from Mindoro,” she said. Executive Secretary Eduardo Ermita later told reporters the directive was relayed to Philippine National Police Director General Avelino Razon Jr., who in turn would relay the order to local police officials. But he stressed checkpoints are necessary to prevent criminality.
She earlier ordered that government-subsidized rice be pulled out from public markets and sold directly to poor families through local government units and religious groups.
“We transferred (NFA) rice to outlets in depressed communities so that we can make sure that the affordable rice reaches them,” Mrs. Arroyo said. “We will begin to distribute also through the public schools in provinces and in the National Capital Region where the hunger incidence is high.”
Mrs. Arroyo said local officials have assured her of tight monitoring of rice warehouses and stores to prevent hoarding and price manipulation.
She also said lawmakers have committed to prioritize agriculture-related bills to ensure food security.
Ermita said the Department of Social Welfare and Development (DSWD) is prepared to give out access cards to some 600,000 poor families nationwide. An access card is required for the purchase of NFA rice at P18.25 per kilo.
Ermita also denied that such a scheme would only be used in administration bailiwicks and not in areas identified with the opposition.
“This is for everyone and the DSWD is doing this in coordination with LGUs and the Church so that this would not be politicized,” he said.
Sovereign guarantee needed
The National Food Authority (NFA) will impose a new requirement on interested bidders in NFA’s scheduled tender for 500,000 metric tons of rice on May 5.
In a pre-bidding conference yesterday, NFA said it would require interested bidders to secure a “sovereign guarantee” or a government guarantee to pre-qualify for the scheduled May 5 bidding.
State-owned trading firms would only be required to submit a bank guarantee.
The new requirement, given the short period of time left, is seen to lessen or eliminate the participation of private trading firms.
NFA Deputy Administrator Ludovico Jarina admitted that the new requirement is intended to “flush out” bidders who have been holding their offers, causing the NFA to miss its procurement targets in the past four tenders.
The NFA is authorized to procure up to 2.1 million MT of rice this year to build up the country’s buffer stock.
So far, Jarina said, the NFA has been able to secure only 1.2 million MT. The low offers have already forced the NFA to accept increasingly higher bids.
The April 17 tender for 500,000 MT only drew 325,750 MT, with bids ranging from $872.50 to $1,220 per MT.
Tomas Escarez of the NFA Public Affairs Department said the agency is almost “99.9 percent certain” of accepting the entire offer of 325,750 MT even at a much higher price.
The formal announcement of the actual awards is expected today as the Bids and Awards Committee (BAC) was still deliberating yesterday on the April 17 bids.
Sources privy to the bidding admitted that the NFA is in a difficult position because of the volatile global rice market.
“If they don’t accept the bids and the price in the next tender increases, their heads may be on the chopping block,” a source admitted. – With Marianne Go