MANILA, Philippines - Amid calls for the abolition of the National Food Authority (NFA), the socioeconomic planning department believes the state-run grains agency is still needed to maintain sufficient rice supply and keep prices stable.
Speaking during a forum on food security and rice trade in Makati City, National Economic and Development Authority (NEDA) director general Arsenio Balisacan said the NFA should continue to carry out its palay procurement functions for buffer stocking and price stabilization.
He said the grains agency could maximize procurement by buying during the harvest season in areas where there is traditionally a surplus of production like Nueva Ecija so that palay could be procured at low prices for release during the lean season.
Balisacan said the NFA should continue to be the lead agency in importing rice for buffer stocking if domestic production falls due to natural calamities.
But some are calling for the abolition of the NFA, citing billion of pesos in debt the government has incurred over the years.
Malacañang, however, has stood pat on its position not to abolish the grains procurement agency, saying this would affect millions of Filipino farmers dependent on NFA support price for palay.
The Palace has said the agency’s operations may have to be streamlined to trim down its debts.
To date, NFA’s debts are placed at around P150 billion.