NFA: Rice imports must be fast-tracked

State-run National Food Authority (NFA) is pushing for the earlier importation of rice to boost the country’s buffer stocks and avoid shipping and distribution delays that may be caused by unfavorable weather.

“Right now, the typhoons are lining up like people buying NFA rice,” spokesperson Rex Estoperez said in a telephone interview.

“If we want to avoid similar delays, we must import now,” he added.

The NFA has so far secured approvals to import 500,000 metric tons (MT) of rice — 250,000 MT from Vietnam and Thailand through government-to-government deal and another 250,000 via the private sector.

Delivery of the first tranche was supposed to be completed in June and the rest is expected to be brought in by the end of August. However, inclement weather hampered the arrivals and distribution, which was meant to stabilize prices of rice in the retail market.

“Right now, we are distributing rice as they arrive… unlike before that we had the inventory and the distribution volume,” Estoperez said.

Last month, NFA Administrator Jason Aquino said he was proposing another 500,000-MT shipment, to be delivered by October, to prevent a repeat of an inventory depletion that saw the agency’s stocks reduced to just two and a half day’s worth of consumption.

By law, the NFA is mandated to have at least 15 days worth of consumption at any given time and 30-day buffer during the lean season that starts in July and ends in September.

The new imports still have to be approved by the NFA Council. Estoperez said a decision could be made by next month.

Government-subsidized NFA rice is sold at P27 and P32 per kilogram, much cheaper than commercial rice that is typically sold at P38 to P40 and above.

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