DA sees no need to import more rice this year

MANILA, Philippines - Agriculture Secretary Proceso J. Alcala does not see the need to import more rice this year even as National Food Authority (NFA) Administrator Angelito Banayo warned that the grains agency’s stocks would be down to just 30 days by the end of the year.

Alcala testified before the Senate finance committee yesterday.

For his part, Banayo told the committee that as of Sept. 7, the NFA’s rice stock stood at 1.2 million metric tons will last for 41 days.

Add to this the stocks held by millers and traders which make up the equivalent of 20-day consumption, Banayo said.

Households, according to the Bureau of Agricultural Statistics (BAS) hold the equivalent of 23 to 24 days.

As of Sept. 7, total rice stocks held by the three groups make up the equivalent of 83 to 84 days of consumption, Banayo said.

In another development, Alcala told the Senate finance committee that the debt of the NFA will continue to rise unless it is transferred or absorbed by the National Government.

Banayo said the NFA’s debt has been reduced to P153 billion as of June 30 this year compared to the year ago level of P176.8 billion.

By the end of this year, the NFA head said, the agency’s debt would go down further to P150 billion due to further repayments.

 By 2012, though, Banayo said, the NFA’s debt is expected to rise anew to P157 billion, and is likely to grow as the grains agency continues to subsidize rice purchases and pay interest on its loans.

The NFA normally buys palay rice at a higher price and sells it to the public below cost.