Food security emergency may be declared on February 4
Credit to Author: Bella Cariaso| Date: Sat, 1 Feb 2025 00:00:00 +0800
MANILA, Philippines — A food security emergency can be declared on Tuesday, Agriculture Secretary Francisco Tiu Laurel Jr. said after he formally received the approved resolution of the National Price Coordinating Council (NPCC).
Under the newly enacted Republic Act 12078 or the Agricultural Tariffication Act, the Department of Agriculture (DA) – upon the recommendation of the NPCC – may declare a food security emergency to address supply shortages or extraordinary increases in rice prices.
“By Tuesday, we will be declaring the food security emergency. I did not see the entire document, but I saw the signature of the chairman,” Tiu Laurel said yesterday, referring to Trade Secretary Maria Cristina Roque who serves as head of the NPCC.
According to Tiu Laurel, he will meet with officials of the National Food Authority (NFA), Food Terminal Inc. and Kadiwa to look at the plans for the rollout.
“This (food security emergency) will be nationwide,” he noted.
Tiu Laurel said the NFA can start selling its rice stocks at P36 per kilo to local government units, which can resell it at P38 per kilo.
“We can now have space for our procurement of palay as we can release the 300,000 tons of rice to the market within six months and hopefully bring down the retail price of rice,” Tiu Laurel said.
He gave assurance that the DA can justify the legality of the food security emergency if it will be questioned in court.
The DA originally planned to declare a food security emergency today but did not meet its target after the delay in the transmittal of the approved resolution of the NPCC.
Aside from the food security emergency, the DA has implemented a maximum suggested retail price of P58 after Executive Order 62, which lowered the tariff on imported grains, failed to bring down the retail price of rice.
Farmers’ group Samahang Industriya ng Agrikultura (SINAG) said the retail price of rice remains high at P61 per kilo despite the drop of its landed cost to P32 per kilo following the decrease in world market price to $460 per metric ton.
“If you include $460 the plus $30 freight cost and the 15 percent tariff, more or less the landed cost is only P32.90 per kilo for five percent broken,” SINAG chairman Rosendo So said.
“Despite the drop in the price of rice in the world market, the retail price of imported rice did not go down,” So added.
So pushed for the lifting of EO 62 after the scheduled review of the National Economic and Development Authority by February, which will bring back the 35 percent tariff.
Based on monitoring of the DA in Metro Manila markets, the retail price of imported special rice was still sold as high as P61 per kilo; imported premium rice, as high as P58 per kilo; imported well-milled rice, P52 per kilo and imported regular milled rice, P48 per kilo.
Meanwhile, MerryMart Grocery Centers Inc. has partnered with the DA for the rollout of P29-per-kilo rice in selected outlets to expand its availability in the country.
The DA and MerryMart signed a memorandum of understanding stipulating the participation of MerryMart in the government’s flagship Kadiwa ng Pangulo program that aims to provide consumers with cheaper rice option.
The sale of the rice in MerryMart outlets may begin as soon as next week.
Tiu Laurel yesterday also warned of possible shortage in the supply of eggs in April, saying many producers decided to either stop their operation or slaughter their chicken layers in 2024 amid the drop in farmgate price.
He said the DA is now doing the necessary action to avert the shortage.
“There is a looming shortage because last year, there was an oversupply of eggs. The farmgate price went down to as low as P4 per piece. Many (egg producers) suffered losses. They slaughtered their layers to have cash,” Tiu Laurel said.
He added that the demand for eggs has increased.