Bohol First District Cong. Edgar M. Chatto questioned the role of the National Food
Authority (NFA) in stabilizing the price of rice during the budget hearing of the
Department of Agriculture (DA).
Chatto asked NFA Acting Chief Roderico Bioco if the agency still has the capacity to
use its buffer stock to influence the market price of rice, as it did in the past.
He noted that the current policy of the agency is to allocate its buffer stock mainly for
emergencies and calamities, rather than for regular market intervention.
“Before, there were certain levels of buffer stock that could also help out in
addressing the price issues,” Chatto said, expressing his concern that the local
community might not understand the change in NFA’s role as a price stabilizer.
Bioco explained that the agency is also analyzing data and identifying factors or
discrepancies in the market that are contributing to the current high prices of rice.
He said that the current situation is similar to that of Indonesia, where there is
sufficient rice supply but the prices are rising rapidly. He added that this may also be
affected by variables such as fertilizer importation and its impact on production.
Bioco admitted that NFA will not be able to significantly intervene in the market even
if it buys local supply as buffer stock, as this will not increase the overall supply.
Chatto raised the issue on the use of buffer stock as a possible solution to the
current rice price problem, recognizing its importance in cushioning the impact of
high prices on farmers, retailers and consumers.