Manila: Local government units (LGUs) can now purchase National Food Authority (NFA) rice on credit, Malaca±ang announced on Thursday. This development follows a meeting between Palace Press Officer and Presidential Communications Office Undersecretary Claire Castro and Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. held on Wednesday.

According to Philippines News Agency, during a press conference, Castro conveyed to Tiu Laurel the financial challenges faced by certain LGUs that are unable to afford bulk purchases of NFA rice. In response, it was agreed that these LGUs should coordinate with the Food Terminal Incorporated (FTI) to facilitate credit purchases of NFA rice.

Castro explained, "DA Secretary Laurel told us that LGUs can procure rice through loan and that they have to talk to the FTI," underscoring the flexibility provided to LGUs in managing their cash flow. She added that the arrangement allows LGUs to pay later, providing immediate relief to those unable to produce the necessary cash upfront. "LGUs that cannot afford to buy NFA rice right away do not need to come up with cash. So, just contact the FTI and they can avail of the rice," Castro assured.

In an earlier advisory, Castro suggested that LGUs sell NFA rice at PHP33 per kilogram instead of PHP35 to alleviate consumers' financial burdens. Meanwhile, the NFA is implementing strategies to clear its warehouses for local palay procurement, addressing the slow distribution of rice stocks to LGUs.

The NFA had previously encouraged LGUs to expedite their procurement of rice from the DA through the FTI, particularly under the ongoing food security emergency for rice. Approximately 70 LGUs have expressed interest in purchasing NFA rice, with only San Juan and Navotas in Metro Manila, and Camarines Sur in the Bicol Region, having secured initial releases.