DA gets P5B buffer fund for rice stockpile

The Department of Agriculture (DA) has received approval in principle for a P5-billion buffer fund to procure rice and other critical agricultural commodities for stockpiling, aiming to counter supply shortages or price manipulation next year.

Agriculture Secretary Francisco Tiu Laurel Jr. disclosed that the DA is exploring various funding sources for the buffer fund but declined to provide specific details at this time.

Section 9 of the Price Act authorizes the agency to procure essential commodities such as rice and distribute them through retail outlets, KADIWA stores, and consumer group outlets during shortages or emergencies.

The Implementing Rules and Regulations (IRR) signed on July 5, 2024, outline distribution channels and a 'trigger point' for utilizing the fund when there is a sudden spike in market prices.

The DA plans to carefully monitor price changes and ensure that the volume of commodities stockpiled does not exceed 10 days of the average national daily food requirement based on available data.