Philippines : Farmers fear NFA rice auction will drive down palay prices
Farmers fear Malacañang’s plan to auction 100,000 tons of NFA rice at ₱25–₱28/kg will depress palay prices ahead of harvest. Former agriculture chief Leonardo Montemayor warned the move contradicts efforts to protect farmers, questioning both NFA’s limited powers under the Rice Tariffication Law and the quality of aging rice stocks.
Farmers have expressed concern that Malacañang’s plan to auction at least 100,000 tons of rice from the National Food Authority (NFA) could further depress palay prices ahead of the main harvest season.
“Why is there a need for the President to order the auction of at least 100,000 tons (2 million bags) of NFA rice? Isn’t this the job of the NFA administrator and/or the NFA Council?” former Agriculture Secretary and Federation of Free Farmers (FFF) chair Leonardo Montemayor said.
Malacañang has set a floor price of ₱25 to ₱28 per kilo for the NFA rice it will release, aiming to free up warehouse space. While the move will allow the agency to stock new palay purchases for the harvest, Montemayor warned it could weigh on prices amid a glut caused by a surge in rice imports.
“Releasing NFA rice into the market so close to, or during, the main harvest (which starts next month) will likely depress the price of palay,” he said.
Under the Rice Tariffication Law, the NFA has limited powers and is barred from retail sales, leaving the agency with few legal options to dispose of its aging stock.
The FFF also questioned the quality of the NFA’s 5 to 6 million tons of rice, asking whether the stocks were still suitable for human consumption or only for livestock feed.
After Malacañang announced a ban on rice imports starting September 1, Montemayor said the auction plan “goes against the government’s objective of protecting our 3 million rice farmers…”
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Source : Bilyonaryo
