DA says no further NFA rice price hikes, warns profiteers

Even as it reassured the public there will be no more hikes after the P2/kg price adjustment for the National Food Authority (NFA) rice, the Department of Agriculture warned profiteers Wednesday against exploiting the situation. Agriculture Secretary Proceso Alcala said the DA is ready to flood the market with government-procured rice to discourage unscrupulous traders from jacking up commercial prices. "Prices of commercial rice follow the law of supply and demand. If some traders jack up their prices, we will flood the market with lower-priced rice and they will find themselves selling at a loss," Alcala said Filipino in an interview on dzBB radio. But for now, he said the government will not interfere with current commercial rice prices. A report on dzRH radio said some brands of "premium" commercial rice were selling for as much as P40/kilo. "Ayaw natin mag-compete ang pamahalaan sa private sector (We do not want government to compete with the private sector)," Alcala said. The NFA's lowest-priced "commercial" rice is P27/kilo – after the government imposed a P2/kilo hike effective Dec. 7. On the other hand, Alcala defended the price hike, saying it is needed to protect the government's palay (unmilled rice) procurement fund. He said that when government procures palay from farmers at P17 per kilo, it should be selling the milled rice at P32 to 34 per kilo in the market. But he said the government initially sold the milled rice at P23.50 per kilo, then at P25 per kilo, before Tuesday's P2/kilo price hike. "At our buying price of palay at P17 per kilo, there is a big gap between our subsidized prices of P23.50, P25, and the P32 to P34 that our milled rice should have fetched in the market," he added. "Kung di natin paliitin ang gap, paiiksiin nito ang lifeline na NFA funds na pambili ng palay na makakatulong sa mas maliit na magsasaka (If we do not narrow the gap a little, we risk depleting the lifeline NFA funds that we use to buy palay from small farmers at a higher price)," he added. Meanwhile, Alcala dismissed speculations of another hike in NFA rice prices. Citing information reaching him, he said there was speculation NFA rice prices may go up to P29/kilo. "Ah hindi po, may agam-agam na ganyan, di ganoon. Sa mahabang panahon na presyo ang ganito, hindi ito kinokonsidera (That will not happen. I am aware of such speculations, and they are not true. This P27 price will last quite a while. We are not considering a follow-up price hike)," he said. — LBG, GMANews.TV