DA, NFA to shed P6B to buy palay from local farmers
Marje Pelayo • October 11, 2018 • 3806
FILE PHOTO: Local famers | PVI/Richard Cortez
QUEZON CITY, Philippines – The Department of Agriculture (DA) in collaboration with the National Food Authority (NFA) is set to launch on Friday (October 12) a massive procurement of locally produced rice in San Jose, Occidental Mindoro.
Agriculture Secretary Manny Piñol said they will begin by scouting areas where the price of rice is low such as Mindoro and Bicol with the intention of helping the country’s local farmers.
The NFA will buy each kilogram of rice for P17/kg with incentives of up to P3.70/kg.
“A farmer who brings his rice to the NFA at 14 percent moisture content, will be earning 20 pesos and 70 centavos for every kilo of Paddy rice that he brings to the NFA,” said Piñol.
The DA will station drying facilities in all NFA buying stations across the country which farmers may use for free.
Farmers cooperatives or organization will get certain points for a certain volume of rice delivered to NFA.
Farmers cooperatives may use the accumulated points in exchange of farming equipment from DA such as tractor, rice harvester and solar power irrigation system.
The DA hopes these measures will be able to prevent that impact of unimpeded rice importation ordered by President Rodrigo Duterte to local farmers.
The government has allotted P6B for the entire procurement process of procuring rice from local farmers.
Meanwhile, the government’s rice buffer stock is estimated to suffice the country’s consumption of up to 163 days with the arrival of one million metric tons or 20 million bags of rice to be imported. – Rey Pelayo / Marje Pelayo
MANILA, Philippines – Retailers and government agencies may now purchase rice from the National Food Authority (NFA) at a reduced price of P25/kg, instead of P27/kg.
Such measure aims at expediting the disposal of NFA’s current buffer stocks, said DA Secretary William Dar.
“Para mas magaan, mas mabilis ang paglabas ng mgaimported rice stocks [of the] National Food Authority,” he said.
Agencies which can avail the reduced price of NFA rice include the Department of Social Welfare and Development (DSWD), Bureau of Corrections (Bucor), Bureau of Jail Management and Penology (BJMP), and local government units (LGUs).
Meanwhile, retailers may also get an even lower price per kilogram of NFA rice at P23 instead of P25/kg.
However, this will still be sold to end-consumers at P27/kg thus retailers will be able to gain P200 higher profit for each sack of rice.
Rice retailer Teresita Terado said the disposal of NFA rice still depends on consumer preference.
“Ang taong-bayan naman ang bibili nyan, hindi naman kami. Kahit i-push namin siya kung hindi naman siya mabenta,(It’s the consumers who buy [the NFA rice] not us. We can’t push them to buy it if they don’t want to),” Terado, a rice retailer at Commonwealth Market, said.
But Teresita said there is not much difference between regular commercial rice and NFA rice when it comes to quality.
Consumer group Laban Konsyumer criticized the government’s economic managers for rejecting their proposal, which according to the group’s president Atty. Vic Dimagiba, led to the current state of NFA rice in the country.
“Our proposal was ignored because the economic managers believe then that the imported rice will bring down prices to 32 pesos a kilogram. That didn’t happen,” Dimagiba said.
“What’s happening now is a sort of deja vu. Cramming and bringing back NFA to the market actively,” he added.
Based on the NFA’s October 17 data, there are still 2.5 million sacks of imported rice for disposal in the agency’s warehouses.
Such imported rice shipment was last contracted in December 2018 and its delivery was completed in February 2019. — MNP (with reports from Rey Pelayo)
MANILA, Philippines – The Bureau of Customs (BOC) has intercepted a number of pork products from Hong Kong and China at Ninoy Aquino International Airport (NAIA) in between June 19 to 28.
The items didn’t have sanitary and phytosanitary clearances from the Bureau of Animal Industry (BAI) and could have been infested by the deadly pig virus African Swine Fever (ASF).
China is one of the 19 countries from where entry of pork and pork-based products are banned.
From a total of 400 samples that BAI examined, 34 tested positive of ASF and these products could have caused infestation in the country’s hog industry if they were not intercepted.
Germany was the latest addition to the list of countries where entry of pork products to the Philippines was banned.
Though there were no reports yet of ASF-infestation in Germany, the Philippines included it in the list after a German company exported pork products to the Philippines along with some 250 kilograms of pork from ASF-hit Poland.
The said shipment was intercepted in Cebu on June 27 which included 27 boxes of pork items from Poland.
That incident, according to Agriculture Secretary Manny Piñol, was a clear violation of the country’s Quarantine Law thus resulting in the ban of pork products from Germany.
“Nakikiusap ako.(‘Im appealing to you) Please understand, these are extraordinary times. We cannot take the risk,” Secretary Piñol said.
“Kasi tingnan mo, Germany napaka-respectable na bansa nyan. It’s export country known for its high standards, nasingitan tayo, (You see Germany is a highly respected country. It’s exports are known for its high standards but some banned (pork) slip past their screening,)” he explained.
Piñol stressed that ASF infestation would compromise the country’s P260-B worth of hog industry.
Some of the Philippines’ neighboring countries have already declared an outbreak of ASF such as Vietnam and Cambodia.
In May, the Food and Drug Administration (FDA) has asked store owners to self-recall pork products from China that covers those manufactured since the start of the import ban.
Still, Piñol assures the Philippines’ hog industry remains ASF free. – with reports from Rey Pelayo
MANILA, Philippines – Local farmers may lose up to P114 billion if the farm gate price of fresh palay remains low, according to Agriculture Secretary Manny Piñol.
At present, the price of palay ranges only from P12/kg to P14/kg which is lower than the P20/kg, the price that was in effect before the implementation of the Rice Tarrification Law (RTL) in March.
Secretary Piñol noted that traders earn huge income from the liberalization of rice importation.
He also pointed out that the landed cost of rice is only a small amount like those which are imported from Myanmar which is only P18/kg.
Because the new law stripped off National Food Authority’s (NFA) regulatory function, traders have become aggressive in pushing for more importation.
“Masyadong ganadong mag-import yung mga trader right now kasi feeling nila wala ng magko-control sa presyo ng bentahan ng bigas sa palengke. So napakalaki ng margin of profit nila, (Traders have become more aggressive to import because they believe nobody else will control the pricing of rice in local markets so their margin of profit is increasing),” the Agriculture chief said.
Based on the Department of Agriculture’s monitoring, rice prices at present ranges from P32/kg up to P70/kg with only about P1 to P2 drop per kilogram.
This is about a quarter of the expected reduction in the price of commercial rice in relation to the implementation of the rice tariffication law which is supposedly P7/kg.
The Department is set to implement the suggested retail price (SRP) on commercial rice starting next week which ranges from P35/kg to P38/kg.
“We would like to address the greed of some importers doon sa markup nilang napakalaki (regarding their very high markup) by setting a cap on the selling price of imported rice
The official said the implementation of the SRP is based on the Price Act wherein violators may be fined.
The NFA already implemented the SRP on rice in the past but it was invalidated due to the implementation of the RTL.
Piñol said that the law did not specify a limit on the amount of rice that the country may import.
However, it gives the President the authority to increase tariff in the event of oversupply. – with details from Rey Pelayo
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