NFA seeks 330,000 T of rice imports as buffer stocks thin

The Philippines’ state grains agency, the National Food Authority (NFA), has proposed importing 330,000 tonnes of rice to cover an expected deficit in the country’s buffer stock, a statement from the presidential palace said on Friday.

The NFA needs to beef up its buffer stock for future relief operations in the event of calamities, it said.

Citing data from the Department of Agriculture, the statement said the country is expected to end the year with 1.69 million tonnes of rice inventory, equivalent to 45 days of buffer stocks, which is just half of the ideal 90-day stock needed to stabilize prices.

“Given the NFA’s budgetary constraints, the agency expects its buffer stocks will decrease to less than 500,000 sacks of rice by July 2023, which is equivalent to less than a day of public consumption,” the statement said.

The NFA is seeking a government-to-government arrangement for the rice importation.

At present, only private traders are allowed to import rice, while the NFA’s function has been limited to emergency buffer stocking.

Under the law, however, the presidential office or its designated agency can decide to bring in rice for NFA’s buffer stocking.

The Philippines is one of the world’s biggest rice buyers, usually importing most of its requirements from Southeast Asian neighbour Vietnam. It also buys some volumes from Thailand, India and other producers in Asia. — Reuters