Price of commercial rice is still high despite NFA rice infusion
Despite the infusion of NFA rice in the local market, the price of commercial rice remains high because of the low supply of rice. CDN FILE PHOTO
Rice supply remains low, despite the distribution of NFA rice in the local market, thus the price of commercial rice remains high.
National Food Administration (NFA-7) information officer Olma Bayno said the infusion of NFA rice in the market should have been able to stabilize the price of commercial rice.
“Maybe because the delivery (of NFA rice) has been delayed and it’s not that sufficient as well that’s why the price of commercial rice has not been affected despite the presence of NFA rice in the market,” Bayno said.
Based on their recent monitoring, the agency has noticed an increase in the price of commercial rice from P1 to P2 per kilo.
Bayno said supplies of commercial rice is running out.
“NFA has inspected warehouses owned by private traders in Dumaguete, Bohol and in Cebu because of speculations that there might be incidents of rice hoarding. But based on our inventory, they now have little supply of commercial rice,” she said.
However, she also said inflation has also contributed to the price increase of commercial rice.
The NFA imported 25,000 metric tons of rice from Vietnam and Thailand which arrived at the Cebu International Port last June.
Last February, NFA stopped supplying NFA rice to retailers, due to shortage of supply.
“We’ve been selling already, but it’s still not enough to stabilize the price of commercial rice,” Olma said.
Olma, however, said that they are expecting that the rice supply would be replenished in the coming days, since harvest of palay by local farmers in the country has already started.
Aside from this, NFA will also request for additional rice importation around 500,000 metric tons that would last until December of 2018.
“We also have an on-going importation for the 2nd batch of commercial rice under the minimum access volume (MAV) importation through private rice traders,” she said.
The MAV importation started in June and is expected to be completed this month. This rice importation is part of the 805,000 metric tons of rice supply, which was contracted last December.
NFA-7 is also intensifying its campaign to visit remote areas in the region through their rolling stores, especially in places with no NFA rice outlets.
NFA rice sells for P27 to P32 per kilo.
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