Rice begins to balance out
The Philippines may no longer need an “unimpeded rice importation” this year as the supply of rice
has started to stabilize ahead of the peak of the harvest season.
A vendor arranges rice varieties on retail at his store at Paco Market in Manila, as the government reports
that the supply of the country’s staple food has started to stabilize ahead of the peak of the harvest season. (Ali Vicoy/ MANILA BULLETIN)
Right now, the country is anticipating the delivery 750,000 metric tons (MT) of imported rice to be procured by the
National Food Authority (NFA). Apart from this, major retailers have been authorized to directly purchase 350,000 MT of rice
as part of the Department of Trade and Industry’s (DTI) proposal.
Agriculture Secretary Emmanuel Piñol also revealed that the government has allocated an initial fund of P6.7 billion for the
aggressive local palay procurement program.
NFA Deputy Administrator Tomas R. Escarez, who now serves as the agency’s officer-in-charge, said that with the palay procurement
fund he is optimistic that the agency could procure 2.6 million bags of palay.
If successful, this could help fill the agency’s buffer stock with sufficient amount of rice without resorting to importation, Escarez said.
President Duterte recently authorized the “unimpeded importation” of rice to boost local supply and lower prices in the market.
Underscored sufficient government stockpiles
The President acknowledged that the “stomach comes first” as he underscored the need to continue importing rice to keep
sufficient government stockpiles and ensure the availability of affordable rice to families.
These additional imports were supposed to help temper the non-stop increase in the price of
local rice as well as replenish the stocks of NFA.
These extra imports should help temper the relentless increment in the cost of neighborhood
rice and also renew the loads of NFA.
The first arrangement of NFA is to crush in three offering process in the range of over multi month
to cover the importation of the 750,000 MT of rice.
Yet, NFA representative Angel Imperial said it may not really happen any longer.
On the other hand, NFA as of now directed a week ago the pre-offered meeting for the buy and supply of the initial 250,000 MT of imported rice,
which will be done through an open delicate plan. The supply contracts are required to be granted one week from now.
250,000 MT of rice
From that point forward, Imperial said the NFA won’t quickly lead another importation and would rather check if there’s as yet a requirement for it.
“For the following 250,000 MT of rice, it has just been endorsed however we will in any case take a gander at it. We will take a gander at the market, the free market activity, and afterward we will again make suggestions to the NFA Council,” Imperial said in a telephone meet.
With all the pending rice importation, the homestead entryway cost of palay keeps on dropping amid the most recent seven day stretch of September, while the expense of well-and standard processed cost were likewise for the most part down.
An information from Philippine Statistics Authority (PSA) demonstrated that ranch door cost of palay keeps on declining by 2.05 percent to P22.41 per kilogram (/kg) week-on-week. Contrasted with the normal cost in a similar time of the earlier year, it ascended by 16.54 percent.
At the discount exchange, the discount cost of all around processed rice fell by 0.20 percent to P45.95/kg, while at the retail exchange, the normal cost is bring down by 0.14 percent to P49.30/kg on a week by week premise.
Crept up by 0.46 percent to P46.04/kg
Then, contrasted with earlier week’s level, the normal discount cost of standard processed rice at P43.08/kg around 0.09 percent, while the normal retail cost of consistent processed rice crept up by 0.46 percent to P46.04/kg.
“We can see through our steady observing that the costs are going down. We are situational. Sizable volume from the current importation program as yet conveyed,” Imperial said.
Meanwhile, starting at now, the nation’s aggregate rice stock stands at 1.18 million MT. Of this, 128,000 MT held by NFA.
Hence, the interim, the NFA propelled on Friday its national neighborhood paddy rice acquirement program in San Jose, Mindoro Occidental by offering an extra impetus of P3 per kilo, over the P17.70 per kilo purchasing cost, for spotless and dry paddy rice.
The P3 extra motivating force per kilo denotes the first occasion when that the NFA gave a higher installment to the ranchers’ deliver since 2008 when the purchasing cost of palay expanded from P11 to P17.
The neighborhood obtainment program with the additional impetus likewise gone for building up a help cost for agriculturists who might influenced by the lifting of the Quantitative Restrictions (QR) on imported rice.