DA: Higher funding, NFA buffer stock to lower rice price

MANILA – The Department of Agriculture (DA) on Thursday stated that increased funding and higher rice buffer stock will play a vital role in reducing the price of the staple in the country.

According to Agriculture Secretary William Dar, a PHP20 per kilogram price of rice would be only possible with strategic planning and programs “involving all sectors”.

“We have to really make it possible. Every efficiency that we can have; every good technology that we have; every opportunity to capacitate the farmers and engage the youth; we should have an increasing investment for post-harvest facilities including drying, milling, warehousing, we should invest,” he said in the Laging Handa briefing.

However, Dar lauded the aspiration of the next administration under President-elect Ferdinand “Bongbong” Marcos Jr., noting that he shares the same goal.

Higher yields with lower production costs, he said, should be first attained.

Considering the ongoing conflict between Ukraine and Russia, these prerequisites remain a challenge.

“Our latest analysis shows that if this war in Ukraine continues, the cost of production is at three pesos and thirty centavos. So add it to the present level, of course, producing a kilo of palay (unhusked rice) is at PHP11.50, so almost PHP14.80, the cost producing a kilo of palay is at fifteen pesos,” he said in mixed English and Filipino.

He also emphasized the significance of identifying “challenges and value chain approaches”.

“As I’ve said, we will increase productivity, yield targets, we will work on lowering the cost of production, which is currently increasing, we hope this will drop. So, we have many challenges that we have to put into consideration in this new program, designing this program towards the P20.00 rice price,” he said.

According to Dar, the incoming administration may opt to invest in increasing the buffer stock of the National Food Authority (NFA), setting China and India as examples with a 365-day buffer stock of rice.

“Strengthen the NFA; increase buffer stocking; increase the fund, as well as the fund for capital expenditure for us to do this. So, if we start this July towards the end of the year, they can have that capacity of good for 15 days but we see to it that if we have a stimulus bill, the capital expenditure should be increased so that next year they can go to full capacity of 30-day buffer stocking,” he said.

Only a PHP7 billion budget is currently being allocated for the NFA annually, which can only provide 300,000 metric tons of buffer stock only good for a week.