Tuesday, December 11, 2018

Gov Marcos: NFA should buy rice at traders’ buying rate

Sep 29, 2018 @ 14:44

Ilocos Norte Governor Imee Marcos said the National Food Authority (NFA) should “be authorized to buy milled rice from the rice traders at prevailing average market prices or purchase palay from the farmers at prices matching rice traders’ buying rate.”

This means the NFA will be buying high and selling low.

This also means that the NFA will incur added costs.

The Ilocos Norte politiko said this should be done while the Rice Tariffication bill is yet to be passed by Congress.

“The TRAIN Law has a catch-all provision which could serve as legal basis for a rice buying program by the NFA using incremental proceeds from TRAIN Law revenues. This provision will address costs,” Marcos explained.

She also suggested that the NFA should have a rice buffer of one to three months.

“The size of the NFA rice buffer could depend on market supply forecast models. What matters is that higher NFA inventories will convince the poor switch back to NFA rice,” Marcos said.

“When the poor are assured of the stable supply of NFA rice, they will choose the NFA rice instead of commercial rice and it will be this change in buying behavior that will reduce the demand for commercial rice and result in lower commercial rice prices while we wait for imported rice to come in,” she added.

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