Agriculture Secretary Francisco P. Tiu Laurel Jr. declared on Monday a food security emergency on rice based on recommendations from the National Price Coordinating Council (NPCC). The food security emergency was prompted by the “extraordinary” rise in local rice prices, which has persisted despite lower global market costs and a reduction in tariffs in July.
“This emergency declaration allows us to release rice buffer stocks held by the National Food Authority (NFA) to stabilize prices and ensure that rice, a staple food for millions of Filipinos, remains accessible to consumers,” said Secretary Tiu Laurel, explaining the rationale behind the issuance of Department Circular No. 03.
The decision follows a determination by the NPCC, chaired by Trade and Industry Secretary Maria Cristina Roque, that while global rice prices have eased and President Ferdinand Marcos Jr. reduced the rice tariff from 35 percent to 15 percent in July to lower costs, local prices have remained high.
NPCC cited data from the Philippine Statistics Authority, which showed rice inflation surged to 17.9 percent in September 2023, far exceeding the government’s target of 4 percent for food inflation. The cost of regular and well-milled rice remained elevated, up by 19 percent and 20 percent, respectively, compared to the previous year. Rice inflation was only 4.2 percent in July 2023.
Under Republic Act No. 12078, a recent amendment to the Rice Tariffication Law, the Agriculture Secretary is authorized to declare a food security emergency in response to extraordinary price increases. This provision allows the DA chief to direct the NFA, which is legally restricted from selling rice directly to the public, to release buffer stocks to government agencies, local government units, and the KADIWA ng Pangulo program. These actions aim to stabilize rice prices and protect consumers from further price hikes. The NPCC’s recommendation, which identified the “extraordinary” nature of the price increases, was pivotal in prompting Secretary Tiu Laurel to take swift action.
Despite efforts to liberalize rice imports and reduce tariffs, the domestic market has been slow to respond, with retail prices surpassing expectations. This volatility has left many Filipinos, particularly those in lower-income brackets, struggling to afford rice.
The NFA currently holds a buffer stock of approximately 300,000 metric tons of rice, half of which could be released over the next six months to ensure sufficient supply for emergencies and disaster response. The NFA may increase this volume if necessary, as it prepares to begin palay procurement in the coming weeks.
The food security emergency will remain in effect until the situation improves, though the government has committed to regularly reviewing the situation to determine when it can be lifted.
Secretary Tiu Laurel’s declaration underscores the delicate balance the government must strike between open trade policies and domestic market stability. As rice is an essential commodity, ensuring affordable access for all consumers remains a top priority. ###
