Duterte to meet rice traders as NFA supply runs out

MANILA, Philippines — President Rodrigo Duterte is set to meet big rice traders on April 5 amid reports that the country’s grains agency is running out of subsidized rice, the first time in 40 years.

In a press conference, Cabinet Secretary Leoncio Evasco said Duterte will ask rice traders “to help us rather than take advantage of the situation.”

Evasco then slammed the National Food Authority management for supposedly creating an “artificial rice shortage” situation that could stoke panic among the public and make traders “eventually” hoard rice.

Evasco, who sits as the ex-officio chairman of the interagency NFA Council, accused the NFA management of releasing irresponsible statements and defying an order from President Rodrigo Duterte, who appointed the NFA Council chair as the sole “mouthpiece” of the body.

Abolish NFA

In the same interview with reporters, Evasco said terminating the NFA is now being “considered.”

“The NFA could only be abolished first if we have enough rice produce in our country to feed our people,” he said.

The NFA is one of the 12 agencies under the Office of the Cabinet Secretary. 

Reports about the drop in NFA's rice reserve resurfaced early this week, days after the NFA Council recommended an audit of the operations of the grains agency.

Some of the country’s retailers have said the depletion of NFA’s rice reserve was expected, citing the NFA Council’s “long overdue decision” to approve the importation of 250,000 metric tons to serve as buffer stock, which the NFA has been pushing even before the end of 2017.

However, they maintained there is no rice shortage in the country as only the cheap NFA rice has been wiped out.

According to Evasco, the country will not run out of the staple grain amid the expected arrival of imported 250,000 MT of rice just in time for the beginning of lean months.

A total of 501,000 MT of rice was also delivered to the country last month under the Minimum Access Volume allowed for import by a member country, as a commitment to the World Trade Organization, Evasco also said.

Evasco added that the NFA inventory is now only equivalent to 0.35 days.

The NFA is required to maintain a rice buffer stock equivalent to 15 days’ supply at any given time. During the lean months—July to August—the grains agency is required to maintain a 30-day inventory.