THE National Food Authority (NFA) said听on Wednesday听that despite a decline in its rice inventory, the economic managers who control imports do not see an urgent need to import the commodity.

The grains procurement agency has said that stockpiles were thinning, with Reuters reporting that NFA stocks are at 60,000 tons, equivalent to two days鈥 demand, the lowest level in two decades. However, this estimate was disputed by the NFA.

The reported buffer stock is far below NFA鈥檚 mandate to maintain 15 days鈥 supply at any given time.

Reuters also reported that the NFA Council, a panel of senior economic managers which must approve rice orders from overseas, sees no current need to import because of ample inventory in the market.

鈥淩ight now鈥 the council feels the need to import is not that urgent,鈥 the news agency quoted Mercedita A. Sombilla, a Council member, as saying.

鈥淭here is no shortage of rice held by commercial traders and households,鈥 NFA administrator Jason Laureano Y. Aquino added in a briefing.

In the briefing, however, Mr. Aquino said that the actual inventory held by the NFA is 35 days鈥 demand. He added that an import order takes 45 days to ship, suggesting a 10-day gap between the depletion of NFA stock and the arrival of imports if the order were placed today.

The NFA releases rice into the market to help boost supply and stabilize prices, but has had to divert supply to Region V, where agriculture has been disrupted by activity on Mount Mayon. The volcano鈥檚 eruption has also sent thousands of people to evacuation centers, where they are fed by local governments and the Department of Social Welfare and Development (DSWD) in part with rice from the NFA.

The NFA鈥檚 purchase prices are uncompetitive with those offered by commercial traders, which means it is hampered from replenishing its inventory from domestic sources, leading the agency to seek permission to import as early as November.

鈥淭hat鈥檚 what we requested for, another 250,000 metric tons of rice (for import) but there鈥檚 still no approval (from the council),鈥 Mr. Aquino added.

During the briefing, Grain Retailers鈥 Confederation of the Philippines, Inc. (GRECON) President Jaime O. Magbanua said that despite the NFA鈥檚 declining stocks, regional representatives of GRECON have noted no unusual demand pressures. 鈥听Reuters with a report from Anna Gabriela A. Mogato

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