The National Food Authority (NFA) has distanced itself from a proposed deal to import American rice, saying the arrangement is a private-sector initiative. However, the agency maintained that imports remain necessary to meet domestic demand and prevent food insecurity.
PRISM-US Rice Deal Targets 200,000 Metric Tons
The proposed imports stem from a memorandum of understanding between the Philippine Rice Industry Stakeholders Movement (PRISM), a private industry group, and USA Rice.
Under the reported agreement, PRISM could import 100,000 metric tons of bagged and bulk American rice starting in 2027, increasing to 200,000 metric tons annually beginning in 2028.
NFA Administrator Larry Lacson said on Tuesday, October 13, that the initiative is purely private. He clarified that the agency does not issue permits, import the rice, or exercise regulatory authority over the shipments. He also expressed uncertainty over whether the deal would push through.
NFA Cites Gap Between Local Production and Demand
Despite distancing the agency from the agreement, Lacson defended the need for rice imports, saying local harvests account for only about 70% to 78% of national consumption.
He cited the Department of Agriculture's production target of approximately five million metric tons for 2026, saying domestic output alone would not be enough to meet the country's needs and maintain adequate buffer stocks.
With imports, Lacson said, the country's rice buffer stock could last about 75 days.
Proposed Deal Raises Concerns for Local Farmers
Rice imports remain contentious in the Philippines. While imported supplies can help maintain availability and stabilize prices, farmer groups have long warned that an influx of cheaper foreign rice could drive down palay prices, particularly during the local harvest season.
The proposed PRISM-USA Rice arrangement could introduce another supplier into a market where Vietnam and Thailand have traditionally been major sources of imported rice.
However, it remains unclear whether the import volumes outlined in the memorandum represent firm commitments or targets. As of this writing, the Department of Agriculture had not clarified whether it would review the proposed arrangement.
