The Department of Agriculture (DA) began releasing rice stocks of the National Food Authority to local government units (LGUs) on Wednesday, responding to the declared food security emergency following a significant rise in rice prices.
At a ceremony held at the National Food Authority (NFA) warehouse in Valenzuela City, Agriculture Secretary Francisco P. Tiu Laurel Jr. officially handed over rice supplies to San Juan City Mayor Francisco Javier Zamora, who also serves as president of the Metro Manila Council and chairman of the Regional Peace and Order Council.
NFA had planned to release around 25,000 metric tons a month during the food security emergency. NFA said that volume could be increased if needed.
“This is just the beginning. We expect more local government units to participate in this effort, which will benefit not only Filipino consumers but also rice farmers,” said Secretary Tiu Laurel, who also chairs the NFA Council, the policy making board of the government grains corporation under the DA. “With the P9 billion allocated by President Ferdinand Marcos Jr. for NFA’s rice procurement this year, and the remaining funds from last year’s record purchases, we aim to buy even more palay from farmers,” the agriculture chief said.
The NFA Council last year raised the palay procurement price range to P23-P30 per kilo for clean and dry rice, and P17 per kilo for wet palay. Previously, palay buying prices ranged from P16 to P23 per kilo.
On February 3, following the recommendation of the National Price Coordinating Council, the DA declared a food security emergency to stabilize rice prices. The surge in rice prices was triggered by India’s ban on the export of non-basmati rice in August 2023 and heightened global demand due to concerns about low harvests from El Niño in early 2024.
Despite President Marcos’ decision to reduce rice tariffs from 35% to 15% in July, and global rice prices softening after India lifted the export ban in September, imported rice prices have not returned to pre-July 2023 levels. Data from the Philippine Statistics Authority shows that by late June 2023, well-milled rice cost an average of P45.25 per kilo, with regional prices ranging from P38.50 to P51.13 per kilo. At the time, the exchange rate was P55.36 to the US dollar, and rice imports from Vietnam were priced just above USD500 per metric ton—over USD100 higher than current prices. ###
