NFA provincial manager Gil Ibarra admitted that the agency is intentionally selling its rice at a low price so rice traders would be forced to bring down the prices of commercial rice.
But Ibarra clarified that NFA is not competing with the commercial rice traders but supporting the needs of consumers.
He stressed that due to the high price of commercial rice, consumers have shifted to NFA rice.
Ibarra said that at present, NFA supplies only 60 percent of the total consumption of rice in the province.
This is only for the lean month season, Ibarra explained.
During the harvest season, NFA is mandated to supply only 20 percent of the total consumption.
Alex Sy, president of the Filipino Chinese Chamber of Commerce Inc. (FCCC), said the cheap NFA rice is not a gauge to lowering the price of commercial rice.
Sy explained that the price of commercial rice is based on the law of demand and supply. He stressed that due to the rice crises, businessmen bought palay at a high cost.
He also believed that due to the large damage to rice production in the country wrought by Typhoon Frank, the country will again experience shortage of rice supply.
Prices of commercial rice are expected to go down by August and September.
