NFA rice exchange program to soften impact of high oil prices

The National Food Authority (NFA) will actively implement its rice exchange program in response to the instruction of President Arroyo for the agency to mitigate the effects of the recent increase in fuel prices.

NFA Administrator Gregorio Y. Tan Jr. said the agency’s rice exchange program involves the use of locally available well-milled rice stocks for distribution from surplus to deficit provinces without physically moving the stores to help private sector market their stocks efficiently and at lesser cost.

The program involves an exchange scheme where the private sector, including NFA-licensed grains businessmen, may deposit their well-milled rice in a designated NFA warehouse in one province and withdraw the same quality stock in any NFA-designated withdrawal area or warehouse. Identification of depository warehouses shall be based on the availability of storage space in rice-producing areas without compromising the agency’s rice requirements in the area for the given period. Withdrawal areas will be determined based on the availability of rice stocks that will be sufficient to accommodate the requirements of the winning bidder or bidders.

Tan said program will eliminate the cost of transporting rice stocks from the source to consumption area and from the disport to the different distributions areas.

Both the NFA and the private sector will save on fuel and transportation costs in bringing the stocks to distribution areas. "Spillage of rice stocks will be minimized during transport which will mean savings on the part of the NFA. Likewise, our post-harvest facilities will be maximized in the process as we assist grains businessmen in the expansion of their business," Tan said.

He also announced that the agency will step up its rice distribution next month to help prevent speculative increase in the price of rice as an effect of the increase in fuel prices.

"As the country moves towards the lean months, some sectors may speculate on the market price of rice. The NFA, however, will be active in the market to stabilize the supply and prices of the commodity," Tan stressed.

The NFA will publish very soon the list of its Bigasan ni Gloria sa Palengke and Tindahan sa Palengke ni Gloria outlets as well as the schedules of its rolling stores to inform the public on where to find NFA well-milled rice at P18/kg. This will also help prevent speculations on the supply and prices of rice.

More information on NFA programs can be obtained via the Text NFA Program through mobile number 0917-6210927.