The National Food Authority (NFA) is no longer selling subsidized rice at P18.25 per kilo and is in the market for better grain at P25 per kilo.

NFA information chief Rex Estoperez says there is nothing sinister about the plan to sell the excess rice to the Department of Social Work and Development (DSWD) and local government units (LGUs).

By selling the grain at that price, the government would be reducing subsidy and leveling the playing field in the rice market, helping raise the buying price of local palay and mitigating further losses for the agency.

Estoperez came to the defense of administrator Lito Banayo after the scheme was criticized by organizations pushing for the distribution of rice for free to those who do not eat three square meals a day.

The Kilusang Mayo Uno (KMU), Kilusang Magbubukid ng Pilipinas (KMP), National Federation of Women Peasants (Amihan) and the urban poor federation Kadamay have been batting for free rice rations for about four million Filipinos.

Estoperez said the idea of selling the grain to the DSWD and the LGUs would rid the NFA of its excess rice, which would lose its quality if it is not sold within a year.

Rice millers agreed with Estoperez and said rice stocks should move within six months or it will lose its nutritive value.

Herculano “Joji” Co, president of the Philippine Confederation of Grains Associations (Philcongrains), told the Manila Bulletin in an interview that it is a basic rule in the rice trade that all stocks must go before the onset of the main harvest season or “palagad.”

Other traders insisted that it would be unwise for anyone to hold on to rice stocks in their warehouses since legitimate players make only P20 per bag.

With bigger volumes moving, they are assured of better income, they added.

Agriculture Secretary Proceso Alcala will soon meet with rice millers led by Co  to assess the situation of the rice market and discuss means to ensure that there would be enough supply of the staple.

Alcala has also set a conference with wholesalers and retailers to tackle such issues as price movements and rice inventory.