NFA eyes cutting rice subsidies

Admitting unscrupulous traders have virtually defeated the purpose of the program, the National Food Authority hinted Wednesday it might scrap or at least cut down its subsidy for rice. NFA spokesman Rex Estoperez said consumers prefer commercial, regular-milled rice even if it costs higher than what the NFA is selling. "Kung patuloy ang subsidy at distribution at di napupunta sa beneficiary, we might as well adjust or review ang programa natin. Sa may coupon lumalampas at napupunta pa rin sa commercial rice. Yan ang iniiwasan natin (We might as well adjust or review the program if the intended beneficiaries don’t buy the subsidized rice. Even if we distribute the subsidized rice only to those with coupons, still it ends up to some commercial sellers)," Estoperez said in an interview on dzBB radio. Earlier, the NFA started an audit of its systems after President Aquino said in his State of the Nation Address (SONA) that the agency may have over-imported rice. Aquino noted in his SONA that many bags of rice are rotting in NFA warehouses even as millions of Filipinos go hungry. Subsidized NFA rice for poor families is sold at P25/kilo. In "poorest areas," it is sold at P18.25/kilo. But Estoperez, citing information reaching the NFA, said consumers now prefer regular-milled commercial rice at P27/kilo. Worse, he said, some unscrupulous traders have bought the lower-priced NFA rice and mixed it with commercial rice and sold it at higher prices. "They reprocess the NFA rice and sell it at commercial prices. We do not want our subsidies will go only to some traders," he added. In a separate interview on dwIZ radio, Estoperez said the NFA is also reviewing its subsidy and distribution of iron-fortified rice. "Huwag ipilit kung di acceptable sa market. Lolobo ang pagkautang kung pilit natin ang programa na di katanggap-tanggap sa ating kababayan (We cannot force something om the public what it does not accept. Our subsidies for such a program will only bloat our debts)," he said. Besides, he said, the NFA's subsidized rice is mainly for disaster preparedness and hunger mitigation. "Hindi tayo pwede makipagsabayan sa traders (We cannot compete with traders)," he said. Meanwhile, Estoperez said a systems audit is ongoing at the NFA to determine if the agency has over-imported rice. — LBG, GMANews.TV