No NFA rice price hike due to TRAIN
A worker carries a sack of rice near a public market in Binmaley, Pangasinan yesterday morning.
MANILA, Philippines — The National Food Authority (NFA) said it will not increase the price of Filipinos’ main staple amid fears of the expected impact of the new tax system.
The NFA said consumers need not worry about higher cost of rice even if pump prices will soon reflect higher excise tax rates under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
This came after consumers expressed concern that the more affordable NFA rice will soon cost more due to higher fuel prices, which will in turn affect transport of the product.
The Department of Energy (DOE) earlier said pump prices of petroleum products will reflect higher rates starting Monday, when new fuel stocks roll into the market.
“We have an ongoing cost analysis on impact of the new tax law but NFA rice prices remain,” NFA spokesperson Rebecca Olarte said in a text message.
NFA administrator Jason Aquino has directed the agency’s finance and operations departments to conduct a cost analysis of the impact of the new tax law on the price of rice.
The NFA, however, is yet to finish and release the result of the analysis.
“As watchdog of national food security, the NFA’s role is to make rice, our basic staple, available, accessible and affordable in any part of the country at all times,” Aquino said.
The NFA also said there is no shortage of rice supply, which means there is no valid reason to hike rice prices.
NFA sells two kinds of rice: one priced at P27 per kilogram regular-milled at 25 percent brokens and P32 per kilogram well-milled at 15 percent brokens.
The agency also issued a warning to rice traders not to take advantage of the ongoing speculations by unduly increasing prices.
“The NFA implements rice trading rules and regulations, therefore we can sanction any trader who will be violating our laws,” Aquino said.
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