Government may declare food security emergency

MANILA, Philippines —  There is sufficient basis to declare a food security emergency, Agriculture Secretary Francisco Tiu Laurel Jr. said yesterday, noting that rice prices remain high despite the imposition of lower tariffs on imported rice.

“The data was very clear when we presented it to the NPCC (National Price Coordinating Council),” Tiu Laurel told a press briefing at Malacañang. “We have solid data that show that it is really justified.”

He said he is waiting for the NPCC to formally transmit its recommendation to the agriculture department for the declaration of a food security emergency.

Once he receives it, Tiu Laurel said he would seek comments from President Marcos.

Under the newly enacted Republic Act 12078 or the Agricultural Tariffication Act, the Department of Agriculture (DA) – upon the recommendation of the NPCC – may declare a food security emergency to address supply shortages or extraordinary increases in rice prices.

A declaration of food security emergency would allow the National Food Authority to release its rice buffer stocks to the market and replace them with locally produced palay.

Only NFA rice stocks a month away from aging or have been untouched for two months in warehouses may be released and sold, under the law.

According to Tiu Laurel, a maximum suggested retail price of P58 per kilo has been set and will be subject to review every two weeks. He said the unloading of 300,000 metric tons of rice from the NFA warehouse to consumers would help lower the prices because it would augment supply.

“As of the moment there is a target of bringing it down to MSRP (maximum suggested retail price) P52, P50 by end of February,” he said.

“Of course, once the NFA rice enters the market... it is hard to say exactly... but P3 to P5 (reduction) is really possible in my opinion, especially now that world prices have dropped.”

Profiteering

Asked why rice prices did not decrease despite the tariff cut and the lower global prices, Tiu Laurel replied: “In my opinion, there was some profiteering.”

“We have been coordinating with the DTI (Department of Trade and Industry) because the DTI has enforcement powers,” he added.

Trade Secretary Maria Cristina Roque said violation of the price ceiling is punishable by a fine ranging from P5,000 to P1 million.

“The DTI will continue to work closely with the DA and other concerned agencies to implement measures that will address the current rice situation. So, the Department of Trade and Industry will monitor and will also enforce the price of rice in coordination with the price set by the Department of Agriculture,” Roque added.

Tiu Laurel said the declaration of food security emergency is a critical move to address the high retail price of rice in the country. The DA chief also stressed the broader economic benefits of affordable rice prices, noting their impact on inflation and the Bangko Sentral ng Pilipinas’ interest rate policies.

“Even if you don’t eat rice, lower rice prices help stabilize our economy,” Tiu Laurel said.

DTI’s Roque chairs the NPCC.

“This declaration empowers the DTI to take decisive action in protecting consumer welfare while strengthening our nation’s agricultural backbone. By prioritizing the produce of hardworking Filipino farmers, we are fostering a resilient and self-reliant Bagong Pilipinas – one that ensures stability, sustainability and shared prosperity for both consumers and the agricultural sector,” Roque said.

Based on monitoring by the DA of Metro Manila markets, imported special rice was still being retailed for P65 per kilo; imported premium rice, as high as P58; imported well-milled rice, P54 per kilo and imported regular milled rice, P48 per kilo.

At least 4.78 million metric tons (MMT) of imported rice arrived in the country in 2024.

Tiu Laurel said other initiatives are being done to bring down the retail prices of rice, including the imposition of maximum suggested retail price (SRP) of P58 per kilo for imported rice, effective Jan. 20.

Agriculture Assistant Secretary and spokesman Arnel de Mesa said aging NFA rice stocks have ballooned to 700,000 bags from the previous 600,000 bags in December 2024.

“As reported by (NFA) administrator Larry (Lacson), there are now 700,000 bags of NFA rice that are aging, 300,000 bags entered the category of aging (stocks) and the 400,000 bags will also enter the category of aging by next month,” De Mesa told The STAR.

He said the NFA will also ask the Commission on Elections (Comelec) to exempt the sale of NFA rice to local government units (LGUs) from the election ban.

“The NFA needs to get an exemption from the Comelec. It will be covered by the election ban because of the upcoming elections,” De Mesa said.

He said that under a food security emergency, the NFA can sell rice stocks to Metro Manila mayors, who are then allowed to resell them to prevent the stocks from rotting in warehouses.

Tiu Laurel said the NFA Council, which he chairs, is initially eyeing to sell the NFA rice stocks to LGUs, government-owned and controlled corporations, Armed Forces of the Philippines and Philippine National Police for P36 per kilo.

At this price, the LGUs and the other government agencies would be able to retail rice for P38 per kilo.

“But by March we want to sell the NFA rice stocks at P33 per kilo so the LGUs and other participating government units can sell it to the market at P35 per kilo,” Tiu Laurel added.

The release of the NFA rice stocks is also aimed at decongesting warehouses in time for the upcoming dry season harvest.

“The warehouses are full, they have almost 300,000 metric tons of rice and harvest season is coming. If the warehouses are full, then the NFA will not be able to buy palay from local farmers at a good price,” Tiu Laurel said.

He also announced that the P40 per kilo of rice under the DA’s Rice-For-All program will be reduced to P38 per kilo starting today.

“This price reduction will take effect on Friday just ahead of the implementation of the maximum suggested retail price (SRP) of P58 per kilo for five broken imported rice,” Tiu Laurel said.

Together with DTI’s Roque, Tiu Laurel conducted public market inspection in Pasig City yesterday.

The maximum SRP of P58 per kilo for imported rice will start on Jan. 20, initially for Metro Manila markets. The maximum SRP will be reviewed monthly.

He assured the public that the maximum SRP will cover other key cities nationwide.

“If world rice prices remain stable, we anticipate a reduction in the maximum SRP after the February review,” Tiu Laurel said.

FFF: No need for emergency

For Federation of Free Farmers (FFF) national manager Raul Montemayor, there is no reason for the DA to declare a food security emergency.

“I don’t think there is a national food security emergency on rice. There is no shortage in supply, there is no calamity, harvests will start again in March and prices, while still high, are actually slowly going down,” Montemayor said.

“What we have is a failure of the government agencies to run after and discipline profiteering importers, wholesalers and retailers. Instead of running after them, the government has instead opted to manipulate the law so it gives them the legal basis for releasing NFA stocks to LGUs in an attempt to lower prices,” he said, referring to the RA 12708.

Montemayor added that the 500,000 bags that NFA is considering releasing is only about 25,000 tons or about 66 percent of the country’s rice consumption for one day.

“Even if concentrated in Metro Manila, it will not have a large influence on overall prices,” he said.

Farmers’ group Samahang Industriya ng Agrikultura (SINAG) executive director Jayson Cainglet said the NPCC should also recommend the lifting of EO 62, which lowered the tariff on imported rice to 15 percent.

“We urge the National Price Coordinating Council to recommend to the National Economic and Development Authority (NEDA) the repeal of EO 62 and revert rice and pork tariffs to 35 percent,” Cainglet said.

“The importer-traders only pocketed the savings in the tariff reduction, (now totaling) P16 billion as the consumers did not benefit from this,” he said.

“It should be the farmers who should receive assistance. Repealing EO 62 will provide additional revenues for the government that is earmarked to directly support our rice farmers,” he added.