NFA-NegOcc sells part of buffer stocks to LGUs, gov’t agencies

By Erwin Nicavera/Philippine News Agency

BACOLOD CITY — The National Food Authority (NFA) is selling a portion of its 93,000 bags of buffer stocks to local government units (LGUs) and other government institutions in Negros Occidental.

Provincial manager Frisco Canoy said that as of Friday, they have been selling rice to government entities at a new price of PHP37 per kilogram from the previous PHP32.

A 50-kilo bag now costs PHP1,850 from only PHP1,600 before.

“This might be an offshoot of the new law that exempts LGUs and other government agencies from the subsidy,” Canoy said.

NFA-Negros Occidental regularly supplies rice to the Bureau of Jail Management and Penology for the consumption of inmates, and the Department of Social Welfare and Development for its supplemental feeding program.

“Government agencies can actually buy rice directly from NFA without canvass of prices or bidding although they can still opt to buy commercial rice from private suppliers,” Canoy said.

In February this year, President Rodrigo Duterte signed Republic Act 11203 or the Rice Import and Export Liberalization Law, which lifted import restrictions on rice to make the price of the staple commodity affordable for all.

The new law has removed the regulatory functions of the NFA over international and domestic trading of rice.

NFA-Negros Occidental, like other provincial offices, can no longer engage in licensing and registration of persons and entities in the grains business, and collection of regulatory fees.

Other functions stripped from the agency include the issuance of negotiable warehouse receipts, warehouse inspection, authority to seize hoarded stocks, and enforce rules and regulations in the grains business.

Canoy said they continue to implement other remaining functions like buffer stocking for calamities and emergencies, which is part of the NFA’s mandate of ensuring food security.

He added that NFA-Negros Occidental will continue to distribute the remaining buffer stocks to at least 160 accredited outlets in the province until August this year.

Selling price for other consumer groups, including accredited outlets, is still at PHP25 per kilogram. The outlets then sell NFA rice at PHP27 per kilogram.

For the latest updates about this story, visit the Philippine News Agency website

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