NFA to 鈥榖uy Pinoy鈥� despite tariff cuts
ENOUGH STOCKS The National Food Authority said it had sufficient rice stock against any shortage. —CONTRIBUTED PHOTO
SAN ILDEFONSO, BULACAN — The National Food Authority (NFA) said it will continue purchasing locally produced palay to build the country’s rice stockpile intended for disasters or natural calamities even as farmers have expressed concerns that the impending rice tariff cut may dissuade them from cultivating unhusked rice in the country as the selling price of their harvest may decline.
“The NFA’s mandate under the law is very clear—to buy produce from local farmers to build our buffer stock. My view is that the lowering of tariff on imported rice won’t influence the NFA’s buying price,” NFA administrator Larry Lacson said in an interview here.
Angelo Vitalista, a farmer in this part of Bulacan province, said the tariff reduction could decrease their earnings from cultivating the staple food, possibly forcing them to sell their lands to make ends meet.
“The farm-gate price of our rice produce may decrease. It will severely affect farmers,” Vitalista said in an interview on Friday.
“Farmers will definitely put their lands on sale as they will be discouraged from planting palay. Right now, we are not that concerned because our livelihood is stable,” he told reporters.
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“That is why many people are buying farmlands because farmers do not earn as much money. We only rely on farming to sustain our livelihood,” he said.
Article continues after this advertisementThe National Economic and Development Authority (Neda) board led by President Marcos said the tariff for rice imports will be decreased to 15 percent from 35 percent.
READ: Marcos: Will boost NFA rice stock with local sources, imports
The modified Comprehensive Tariff Program (CTP) covering the years 2024 to 2028 is meant to keep prices of major food products affordable for consumers.
“Even if the government lowers the tariff rate to zero, we will still buy farmers’ produce at a price that benefits them … Imagine a buying price of P23 to P30 [per kilogram]. This won’t change even if the tariff is slashed to 15 percent. The NFA will not decrease its buying price,” Lacson told reporters.
For next year, the NFA intends to expand its buffer stock to 545,000 metric tons (MT) not only to build the nationwide rice inventory but also to help regional efforts to build food reserves.
P16-B fund needed
The NFA had sought a budget of P16.305 billion for 2025 from the current level of P9 billion to sustain buffer stocking efforts and beef up its storage capacity.
Lacson said the food agency raised its procurement target to 545,000 MT for next year from 495,000 MT set for 2024. Of which, some 300,000 MT will be maintained as a buffer stock while 12,000 MT will be committed to the Asean Food Security Reserve.
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According to Lacson, the NFA head said they are close to—or may exceed—its buying target of 495,000 MT for 2024 mainly attributed to the increase in their buying price.
As approved by the NFA Council in April, the procurement price ranges from P23 per kilogram to P30 per kg for clean and dry palay while the buying price for fresh and wet increased from P17 per kg to P23 per kg. He also said they were rushing to build the NFA’s stockpile in anticipation of the La Niña phenomenon, characterized by above-normal rainfall conditions.
