The National Food Authority (NFA) Council, the governing body of the food security agency, today approved to increase the wholesale price of NFA rice from P23.50 to P25.00 per kilogram (kg) effective December 7, 2010. On the retail level, this will effectively increase the price from P25.00/kg to P27.00/kg.

The move is among the measures government is undertaking to ensure the viability of the agency and continue fulfilling its mandate of supporting farmers to produce enough for self-sufficiency.

NFA Administrator Angelito T. Banayo said: “We are looking at the long term viability of NFA. The minimal price increase will go a long way in ensuring continuous support for our farmers while stabilizing rice prices and supply availability.”

Administrator Banayo also explained that the NFA Council decided to announce the price increase a day before its effectivity to prevent speculation among traders which could lead to hoarding.

Banayo explained that the price increase coupled with efficient operations and measures to prevent corruption will allow NFA to stabilize supply for food security of our population. “If we do not take corrective reform measures, NFA may have to cease operations and there will be no more support for farmers,” the Administrator added.

“Konting sakripisyo lang, dahil kung hindi natin isasagawa ang ganito, aabutin ng bansa ang matinding kakulangan sa bigas, at lalong hindi natin mapipigilang sumipa ang presyo,” Banayo further explained.