Agriculture Chief Tiu Laurel Renews Call to Restore NFA Powers Amid Rice Price Concerns

Agriculture Secretary Francisco Tiu Laurel Jr. has renewed his call to restore the National Food Authority’s (NFA) regulatory powers, stressing that its limited role hinders the government’s ability to stabilize rice prices effectively.

Tiu Laurel, who also chairs the NFA Council, pointed to the failure of the Senate—specifically the Senate Committee on Agriculture—to adopt a House-backed amendment to the Rice Tariffication Law (RTL) that would have reinstated some of NFA’s functions.

He criticized the current limitations, noting that the NFA is now reduced to a buffer-stock agency that can only buy palay for emergencies and cannot sell directly to the market. “We need to restore some of NFA’s powers to manage the country’s rice situation more effectively,” he said.

Senator Cynthia Villar, who opposed the restoration, argued that NFA’s historical impact on rice prices was limited, its targeting of poor households was inefficient, and its import operations were costly and often mismanaged. She cited that only 17% of NFA rice reached poor households, while 68% went to non-poor beneficiaries.

Tiu Laurel countered that removing NFA’s ability to sell rice hampers financial efficiency and denies the government a critical market intervention tool that could support both consumers and farmers.

NFA Administrator Larry Lacson echoed these concerns, explaining that under the amended RTL, the agency can only auction aging rice stocks or sell during emergencies or calamities. The auction process can take at least nine months, leading to quality issues and storage costs.

Despite limitations, Lacson said the agency has improved buffer stock levels to over 7.7 million 50-kilo bags—enough for 10 days of national consumption. Still, he warned that warehouse space is maxing out and without reforms, the agency cannot release rice to stabilize prices swiftly.