SS2

Larizza B. david

BS-Entrep 3

The National Food Authority (NFA)

The National Food Authority (NFA) is urging economic managers to approve its request to import
rice this year to stabilize prices of the staple. continues to be in hot water as a new issue is
surfacing amid alleged connivance and backdoor meetings on the country’s rice importation,
according to the Office of the Cabinet Secretary.

A report from the Philippine Statistics Authority (PSA) showed that prices of regular and well-
milled rice have risen by as much as P3 a kilo in six regional centers, including Kidapawan City,
Naga City and the National Capital Region. Although the grains agency has not been able to
control the prices of commercial rice, it sells the staple at more affordable prices as part of its
mandate to ensure food security “Removing NFA rice from the market is like taking away the
lower-prices brand of rice whose quality is comparable to high-priced commercial rice,” NFA
Administrator Jason Aquino said. Evasco was referring to the alleged connivance between NFA
administrator Jason Aquino and deputy administrator Ludovico Jarina.“It has come to the NFA
Council’s attention that Jarina and Aquino had been holding closed door meetings even prior to
Aquino’s appointment as NFA administrator,” Evasco said. “We have received a copy of Aquino’s
letter to the Vietnam embassy, informing the latter that the Philippine government will open a
state-to-state importation this month for its buffer-stock. That letter was sent to the embassy
behind the council’s back,” he added. Apart from Evasco and the NFA, the council is composed of
the Bangko Sentral ng Pilipinas, Development Bank of the Philippines, Land Bank of the
Philippines, Department of Finance, Department of Trade and Industry and the National
Economic and Development Authority Evasco said the council has been requesting the NFA for
copies of the terms of reference (TORs) of all international and domestic cargo handlers of
government rice importation. He said the NFA management refused to furnish the council with
the TORs until now. The MAV refers to the volume of a specific agricultural product that is
allowed to import with a lower tariff as a commitment of the Philippines under the provisions of
the General Agreement on Tariffs and Trade of the World Trade Organization. By: Louise
Maureen Simeon (The Philippine Star)

*What is the issue in the article?

- The issue in the article is removing the NFA rice in the market and the corruption that
happenened“It creates serious doubt on the part of the NFA Council when some of the
NFexecutives have been insisting on a government-to-government procurement despite the lack
of recommendation to import from the National Food Security Committee (NFSC),” Evasco said.

*What action to be taken by the business organization about the issue?

- The policy-making body of the NFA rejected the proposal of the agency to import 250,000
metric tons (MT) of rice this year as the agriculture sector continues to see a positive outlook in
rice production. The PSA reported earlier this week that the country’s palay production for the
first quarter might reach 4.67 million MT as the crop’s harvest area and yield per hectare
continued to improve. With the importation, the NFA is hoping to “immediately replenish its
fast-depleting buffer stock.” To date, its could meet the country’s national consumption
requirement for only three days with 1.8 million bags, way below the stock requirement by its
council of 15 days.But NFA spokesperson Rebecca Olarte said consumers need not worry since
the country’s total rice inventory, including those of households and commercial stocks, was
placed at 2.8 million MT.The NFSC is the recommending unit to the council whenever there is a
need to import rice.“I will propose to the council to create a special committee to investigate the
culprits of this flagrant corruption to the detriment of the country’s food security,” Evasco said.
Aquino, Jarina and the NFA have yet to comment on the new set of issues hurled against
them.This is on top of another issue attached to Aquino after he said that there is no extension
in the arrival of the country’s rice imports under the minimum access volume (MAV) scheme,
even if the council has decided to do so.He said Aquino might soon be removed from his post
following repeated defiance of orders.Aquino is facing serious disciplinary sanctions over his
defiance of the NFA Council’s decision to extend rice importation under the MAV.

*What ismy personal recommendation?

- My personal reccomendation about this issue is that they should take action of what happened
and make sure that it will not happen again, because this is the only way that every lessfortunate
or poor people can eat rice and this is the only price they can afford, not all can afford higher
prices.