A new rule replacing import quotas on rice with tariffs will diminish the role of the NFA to buffer stocking stated Thursday.
NFA Administrator Tomas Escarez said that under the draft of the Rice Tarrification Law’s implementing rules and regulations, the National Food Authority will be compulsory to maintain an “optimum level” inventory that is good for 30 days or equivalent to 1.5 million metric tons.
NFA is said to purchase rough rice from local farmers in turn will be polished with help from private millers. This buffer stock will be positioned to the market during emergencies such as spikes in rice prices.
President Duterte’s economic team pushed for rice tariffs to help alleviate the price of the staple grain when inflation ascended to near 10-year high last 2018.