Philippine Economy Talk

[jay2]

here's the thing

consumers want very low-priced rice which only the NFA can provide

like P27 per kilo or something which is in reality below real market price

in order to sell at a price that low, the NFA has to keep its buying price low right?

if they wanna help farmers they should buy at a higher price but the selling price should be higher din

but consumers will complain naman

if NFA maintains the low selling price but buys at a price that make farmers happy the NFA must absorb significant losses (which means we taxpayers are the loss takers)

well i think yan naman talaga ang function ng NFA

use taxpayer money to provide rice at below market price

The mandate of the NFA is to buy high from the farmers and sell low to the consumers. It is a form of a subsidy for the farmers and to stabilize the price of rice in the market. Yes the government is losing money this way until the time of Cory I think. Then the NFA learned that the price of rice in Thailand is so much cheaper we started to import and the NFA became a money making(milking) institution.

It has also been a political commodity