The National Food Authority announced Tuesday that it would buy 250,000 metric tons of 25 percent broken, well-milled and long grain white rice from five suppliers from Thailand and Singapore under a contract recently awarded under an open tender bidding held in May.
The announcement of the contract came as the government pushed for a law that would end the NFA’s monopoly on rice imports to lower prices for the staple.
Nineteen suppliers joined the recent bidding, but only 13 passed the eligibility and technical requirements, the NFA said.
Eventually, only five passed the post-qualification evaluation by the NFA’s special bids and awards committee.
The fresh stocks will form part of the NFA’s food security stocks during the lean months of July to September, the agency said.
Most or about 200,000 MT will arrive no later than July 31, while the rest will be delivered no later than Aug. 31, the NFA said.
The total volume was divided into seven lots with corresponding discharge ports in Luzon, Visayas and Mindanao to facilitate distribution to the markets and intended beneficiaries.
The NFA said it had no plans as yet to import more rice.
NFA Administrator Jason Aquino said the agency will focus first on the immediate presence of NFA rice in the markets to pull down and stabilize rice prices.
Meanwhile, the government urged Congress to pass the “rice tarrification bill” aimed at driving rice prices down even further.
Socioeconomic Planning Secretary Ernesto Pernia said that under the bill would remove the quantitative restrictions (QR) on rice imports and encourage private traders to bring the staple in, allowing for the influx of cheap rice.
This would help poor Filipinos who spend at least 20 percent of their budget on rice, he said.
“Reducing rice prices is crucial to poverty reduction because the staple is a major driver of inflation,” Pernia said.
Pernia said removing QR on rice with tariffs will lower rice prices and increase revenues for agricultural programs like crop diversification.
The government is also hoping the measure would generate P27.3 billion, which can be used to augment funding for social protection projects such as cash transfers for the poorest families as well as for palay productivity programs.