NFA submits food security plan

The National Food Authority submitted yesterday to President Arroyo a food contingency plan that would ensure adequate supply of rice for the people during crises, particularly with the impending declaration of war against Afghanistan by the United States.

Taking off from the food security plan adopted by the Association of Southeast Asian Nations (ASEAN) during the Gulf War, the NFA food security plan provided for a buffer stock of 74 days of rice.

The ASEAN food security plan provides for a buffer stock of 72,000 metric tons will be made available to the 10 member nations anytime they run out of stocks during crisis periods, Abad said.

Of the 72,000 tons, the Philippines has to chip in 12,000 metric tons; Thailand and Vietnam – both exporters of rice in the world market – 15,000 to 16,000 tons each; Malaysia 3,000 to 5,000 and Brunei less than 1,000 tons, according to NFA Deputy Administrator Gregorio Tan.

These stocks, though considered a common buffer stock for the region, are warehoused right in the country where they are allocated. But any country in the block that needs augmentation of supplies will be allowed to draw from any of the ASEAN members.

Abad in prepared statement said he does not foresee a direct impact on the Philippines in terms of physical security in case of a full blown armed conflict since "we are very far from Central Asia and the Middle East."

But there could be a disruption in fuel supply coming from the Middle East and fuel and food are closely interconnected, he added.

In the event of a conflict, rice exporting countries are expected to hold on to their supplies, which could provide problems to importing countries like the Philippines.

The NFA has a current national buffer of 772,400 metric tons that can last up to second week of July next year, Abad said, adding that this is 47 percent higher than the previous year’s level.

In addition, he said, the private sector has an estimated 419,300 metric tons in inventories aside from 586,700 tons in household stocks.

Total national inventory therefore is estimated at 1.8 million tons or 73 days based on the average daily consumption of 24,400 tons. Total harvest for the year is expected at 12.7 million metric tons.

The NFA contingency plan also includes the strategic positioning of stocks for speedier reaction to price and supply fluctuations, market visibility, judicious stock management, strict implementation of government rules and regulations and prosecution of violators and even food conservation at the consumer level.

Abad said he proposed to President Arroyo the formation of a multi sector consultative council to help implement the NFA contingency measures should there be a need to set them in motion.