NFA floods market; rice prices stabilized

By Jessie R. Valdez

San Fernando City, La Union (9 July) -- "We will flood the market with more rice to further stabilize and eventually pull down prices of the staple, especially for the benefit of our low-income consumers," NFA Administrator Jesus Navarro said during their Management Meeting with DA Secretary Arthur Yap.

Navarro added that since they've implemented the selective bombardment strategy as ordered by President Gloria Macapagal Arroyo, rice prices in Metro Manila have stabilized while those in other regions already went down to as low as P2.00 per kilo since last week.

For his part, DA Secretary Arthur Yap said the price drop is significant because it is happening when retail prices are supposed to be on the upswing during the traditional three-month lean months. "With the adequate stocks of rice in NFA warehouses, the government is ready and able to continue flooding the market with state-subsidized stocks to further bring down the retail prices of rice," he added.

Based from the Daily Market Prevailing Prices Report of NFA Region I, San Juan La Union, as of July 7, 2008, provinces of Abra, Benguet, Ilocos Norte, Ilocos Sur, La Union, Eastern Pangasinan and Western Pangasinan, the commercial well milled rice (WMR), the lowest prevailing price in the market is P35.00 a kilo from a high of P38.00 a kilo while the commercial regular milled rice (RMR), the lowest prevailing price is P33.00 from a high of P35.00 a kilo.

Although in some parts of La Union, the WMR rice can be sold to as low as P34.00 a kilo while the RMR can be sold at P32.00 a kilo.

For NFA rice, the lowest prevailing price in the market is P25.00 a kilo while the NFA rice being sold at P18.25 a kilo are distributed to depressed areas with accredited NFA Tindahan Natin Stores to ease the burden of the poor.

According to NFA, they will flood the market with some 350,000 metric tons or seven million bags every month as a way to stabilize the supply and reduce the prices during the lean months from July- September and the rest of the year. (PIA La Union)