The National Food Authority (NFA) assured the public Saturday that there is enough supply of rice nationwide, in case the demand for the staple food multiplies due to a slight increase in commercial rice prices recently.

NFA Administrator Jessup Navarro said NFA has sufficient inventory of rice and the agency is ready and has the capability to meet any increase in demand for NFA rice.

The agency explained that commercial rice prices traditionally increase during off harvest seasons and traders peg the staple’s price based on their palay buying price.

The rule of thumb in rice trading is to double the price of palay when sold as rice. For example, if traders bought palay at P17 per kilogram, they would sell rice at P34 per kg.

However, Navarro said NFA is prepared to cushion the market against any increase in commercial rice prices because the agency’s inventory of rice today stands at about 20 million bags.

He explained that the current supply of rice is sufficient for some 28 days food security requirements at a daily consumption rate of 726,000 bags.

“This inventory level is almost double the mandatory 15 days food security buffer stock,” he said.

Also, Malacañang recommended the creation of long-term supply contracts to prevent further hike in price commodities, particularly rice.

Deputy presidential spokesperson Gary Olivar said this would ensure the protection of consumers from being exploited by erring traders.

“What is important in the long run is for the Department of Agriculture (DA) to create long-term supply contracts to ensure long-term supply of rice in the country,” Olivar said.

Citing the latest statement by DA Secretary Arthur Yap, Olivar said that the prices of basic commodities are being monitored by the DA and the Department of Trade and Industry (DTI).

“Binabantayan natin ang presyo ng bigas (We are watching the price of rice, an important commodity to make sure there would be no exploitation of the situation,” he said.

Olivar also said that aside from rice, the government is also monitoring the price of flour, adding that the price of basic commodities may be tackled in the Cabinet meeting on Tuesday.

Navarro pointed out that the first batch of the 250,000 metric tons of rice imported as early as November last year is also expected to arrive within the month which will even increase the NFA’s rice inventory.

“The coming palagad or summer harvest that usually starts in February will further boost the food security stocks we have in our warehouses,” he said.

Navarro also cited it has always been the policy of the agency to maintain a high year-end inventory of rice and to position stocks strategically to give consumers ready access to rice supply and protect them from any unwarranted increase in the price of the staple.

“Having sufficient supply on a per province basis also makes it easier for the NFA to increase the volume of its rice distribution whenever demand goes up or when infusion of rice from the private sector slows down,” he noted.

Navarro said this was the reason why the NFA was able to immediately comply with the directive of Agriculture Secretary Arthur Yap to increase by 35 to 40 percent the volume of rice being distributed in Metro Manila in the aftermath of tropical storm Ondoy.

“It is important for us to maintain sufficient rice supply nationwide,” Navarro said.

“The NFA will tap the more than 24,000 active market outlets in intensifying rice distribution,” he added.