NFA eyes P2.25B loss from selling rice reserves

The National Food Authority (NFA) anticipates potential losses of up to P2.25 billion from selling its rice reserves to local government units (LGUs) during a declared food security emergency.

The NFA plans to release 150,000 metric tons of rice over the next six months, approximately 30,000 metric tons monthly, to LGUs and other government agencies.

These emergency sales will involve the NFA's reserves being sold to LGUs at P33 per kilogram, with a suggestion to retail it to the public at P35 per kilogram.

This initiative follows an NFA Council resolution that permits the sale of rice stocks to LGUs and other interested agencies during the food security crisis.

The projected losses per kilogram are estimated to be between P12 and P15.

The current selling price of P33 per kilogram is lower than the previously considered P36 per kilogram, and the suggested retail price remains capped at P38 per kilogram.