Rice Price Concerns Amid National Food Authority Suspensions

The Philippine Chamber of Agriculture and Food Inc. (PCAFI) has raised alarms over potential declines in palay (unhusked rice) prices due to the National Food Authority’s (NFA) diminished capacity to purchase rice from farmers. This concern follows the suspension of more than 100 NFA officials and employees, impacting the operations of various NFA warehouses. PCAFI president Danilo Fausto highlighted fears that rice traders might exploit the situation to buy rice at prices below P20 per kilo, which would disadvantage farmers who rely on the NFA as a fallback buyer to maintain fair market prices.

The issue gained prominence after the Office of the Ombudsman issued a 90-day preventive suspension to 139 NFA officials and employees, including key administrators, over allegations of selling rice at a loss to select traders. The suspensions, which commenced on March 4, have led to appeals from the affected NFA personnel, emphasizing their financial insecurity and the lack of discretion in the release of rice stocks.

The controversy surrounding the NFA’s operations and the subsequent impact on rice pricing has sparked significant concern among agricultural stakeholders. The NFA, defending its actions, stated that its rice sales were part of its mandate to distribute rice in good condition, ensuring the optimal use of its inventory. As the situation unfolds, the agricultural sector remains watchful of the potential implications for the local rice market and the livelihoods of Filipino farmers.