‘Sale of NFA rice to LGUs illegal’

MANILA, Philippines —  The National Food Authority (NFA)’s plan to sell rice stocks to local government units (LGUs) is illegal, a farmer’s group said yesterday.

Federation of Free Farmers (FFF) national manager Raul Montemayor said the government needs to declare a food emergency to warrant the sale of NFA rice at negotiated prices.

Montemayor noted that there is a provision under Section 4 of Republic Act (RA) 12708, the Agricultural Tariffication Act, which explicitly states that the disposal of aging NFA stocks can be done through public auction.

“The option to sell to LGUs at negotiated prices is allowed under Section 2 of the law only when there is a food security emergency on rice due to supply shortage or an extraordinary increase in rice prices, based on a formula to be devised by the National Price Coordinating Council (NPCC),” Montemayor told The STAR.

The newly signed RA 12708 amends RA 11203, the Rice Tariffication Law.

“I don’t think the DA (Department of Agriculture) has declared a food security emergency. So the sale of NFA buffer stocks to LGUs at negotiated prices is questionable,” Montemayor said.

Agriculture Assistant Secretary and spokesman Arnel de Mesa has confirmed the plan of the NFA to sell rice stocks to Metro Manila mayors and allow the local executives to resell the NFA rice.

“Instead of using NFA stocks to lower rice prices, which is not the primary purpose of these stocks, the DA should run after profiteering importers, wholesalers and retailers,” Montemayor said.

De Mesa said allowing mayors to procure NFA rice and resell the staple to their constituents would address the possible rotting of at least six million bags of NFA rice.