NFA to ‘flood markets’ with 3.6M bags of rice
The government on Thursday announced plans to flood markets in the country with 3.6 million bags of imported rice to lower the average prices of commercial rice by as much as P8 per kilogram.
Agriculture Secretary William Dar said the National Food Authority (NFA) is scheduled to release the imported rice until October 10 at a wholesale price of P25 per kg, and a retail price of P27 per kg.
“The 3.6 million bags of imported rice will be out in the markets and this will be done for one month starting today,” he told reporters in a press conference in Quezon City.
“We would like to believe that flooding the market with 3.6 million bags of rice will have a further impact,” he said.
The NFA said this will lower the average prices of commercial rice from P40 per kg.
“The reasonable price of rice in the markets should fall within P32 to P34 per kilogram, but if you look at the markets now, ang pinakamababa is P40,” NFA Administrator Judy Carol Dansal said during the same press conference.
“Ang nakikita namin that would be good news if the price of rice in the market would be P32 to P34. Mag-equal man lang sa P32 to P34 is already a reasonable price for the consuming market,” Dansal noted.
According to the NFA, it seeks to generate P4.86 billion from the sale of the 3.6 million bags, which the agency will then use to procure palay or unmilled rice from local farmers.
Dansal said the government will not be able to earn any additional revenue from the shipment, as the selling price is almost equivalent to the acquisition price of P24.80 per kilogram.
“Sa pag-release namin sa aming retailers, may kaunting lugi. Hindi naman kita ‘yun ‘cause P25 is our release price to our retailers and their release price is P27,” she said.