Negosyante News

May 15, 2025 11:58 am

Cynthia Villar Rejects NFA Power Revival, Cites Inefficiency and Existing Support for Farmers


MANILA – Senator Cynthia Villar has denied allegations from Malacañang claiming she blocked the restoration of the National Food Authority’s (NFA) power to purchase palay from local farmers. Villar, principal author of the Rice Tariffication Law (RTL), argued that such powers are no longer necessary given existing mechanisms to support the rice industry.

Villar clarified that the NFA still purchases palay to maintain a buffer stock, providing farmers with an alternative market during harvest seasons. She emphasized that reforms under Republic Act No. 12078, recently signed by President Ferdinand Marcos Jr., already empower the Department of Agriculture to stabilize the rice market and strengthen regulatory oversight.

The senator cited historical inefficiencies in NFA operations, including:

  • Limited market impact of NFA rice

  • Poor distribution targeting, benefiting only 17% of poor households

  • Costly and delayed rice importations

  • Financial losses due to high procurement costs and mismanagement

  • Spoilage and overstocking of rice

Instead of reverting to past practices, Villar pointed to the Rice Competitiveness Enhancement Fund (RCEF), now increased from ₱10 billion to ₱30 billion annually until 2031, as a more sustainable approach to enhancing farmer productivity and competitiveness.

The statement was issued in response to Palace Press Officer Claire Castro, who claimed Villar hindered the NFA’s restoration of its procurement powers—a proposal reportedly backed by the administration.

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