NFA rice still cheap

This is in reaction to Search for Truth, July 26, 2011 edition with the title Missed Opportunities. Allow us first to thank you for including the matter on rice as one of those important points mentioned by President Aquino in his State of the Nation Address (SONA). However, we would like to make some clarifications on your items on rice.

“Item No. 7 said: His approval of the increase in the price of NFA rice from P18/kilo to P27/kilo. He could have done it gradually, maybe P20 to begin with.”

Furthermore, you suggested revising some of those decisions (missed opportunities) by the President. You underlined the first five recommendations/suggestions which you think are the more significant ones. “No. 3 pertained to rice which said: Reduce the price of rice to P23 or P24/kilo. NFA just announced billions in profits and savings.”

The truth of the matter is: The NFA rice was already priced at P25/kilo when the Aquino government took over. In other words, the decision to remove the P18.25 subsidized price was made prior to President Aquino’s term.

NFA, as the palay buying arm of government, has the concomitant responsibility to support palay farmers through a P17 per kilo price, so that production levels are sustained. At P27 per kilo retail, NFA rice is still lower than commercial level prices.