An agricultural group has pledged to buy rice at a premium to help farmers amid rising planting costs.
This is when the Agricultural Industry Association (SINAG) and the National Food Authority (NFA) reached an agreement this Monday.
With the agreement, the group will buy 7.5 million metric tons of rice at a higher price.
The group clarified they would buy dried rice for ₱19 to ₱20 per kilo and ₱16.50 for wet rice.
It is said to be ₱3 higher than the existing price of rice in the provinces.
“Our ultimate objective is to assure rice farmers that they can continue to plant and that there is a market for their produce,” said SINAG spokesperson Jason Cainglet in a television interview.
The group explained they first talked to the importers about not importing from this month until December 2022.
It is said that the agreement has no effect on consumers, and the price of rice in the market will not increase.
“Hindi na nag-apply [‘yong] importer ng bagong permit and this will help price of rice to stabilize,” said SINAG Chairman Rosendo So.
SINAG to buy palay from farmers at higher prices
The NFA will use its warehouses and post-harvest facilities in the private sector.
“May available warehouses kami na puwede mai-consider. Titingnan kung makakatulong. At sa mga farmers na walang delivery trucks, kasama ‘yan sa binudgetan natin. Puwede kami mag-rent ng truck at puwede mag-pick-up ng ani,” said NFA Administrator Judy Dasal.
The agreement is for the current harvest season only, but it can be renewed depending on the review of the participants.
The Rice Competitiveness Enhancement Fund (RCEF) was established by Republic Act No. 11203, or the Rice Tariffication Law, which took effect on March 5, 2019, and replaced quantitative limits on imported rice with tariffs of 35 percent to 40%.
The RCEF is a P10 billion fund that will be used to fund agricultural mechanization, seed development, propagation and promotion, credit assistance, and extension activities during the next six years or until 2024.
President Bongbong Marcos reintroduced his proposal to change the Rice Tariffication Law in April, which allows for unrestricted rice imports provided private merchants obtain a phytosanitary permit from the Bureau of Plant Industry and pay the 35 percent duty for shipments from Southeast Asian countries.
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