Negosyante News

December 12, 2024 7:34 am

DA Chief Urges Restoration of NFA Powers to Lower Rice Prices

Agriculture Secretary Francisco Tiu Laurel Jr. has called for the restoration of the National Food Authority’s (NFA) regulatory powers to help bring down rice prices in the country.

NFA’s Reduced Role Under the Rice Tariffication Law

The 2019 Rice Tariffication Law (RTL) stripped the NFA of its ability to buy, sell, and import rice, limiting its role to managing buffer stocks. Private entities were allowed unlimited rice imports, aiming to stabilize prices by increasing supply.

However, Tiu Laurel believes that restoring NFA’s powers would allow the agency to better regulate rice traders and intervene during shortages or price surges.

“Previously, rice traders were required to register with the NFA, and their licenses could be revoked for unfair practices,” Tiu Laurel explained. “NFA could sell rice directly in markets or to LGUs at lower prices, and import rice to address shortages. Now, these are no longer allowed.”

Pushing for Change

During a public hearing at the House of Representatives, Tiu Laurel highlighted the need to reinstate NFA powers, noting that despite efforts such as selling rice at ₱40 per kilo in 48 public market stores, broader interventions are necessary to lower prices further to ₱38-₱39 per kilo by January.

President Ferdinand Marcos Jr. recently signed an amendment to the Rice Tariffication Law, partially restoring the NFA’s mandate by allowing it to sell buffer stocks through Kadiwa ng Pangulo rice centers in areas facing shortages or high prices.

However, Tiu Laurel stressed the need for a more comprehensive solution. “If NFA had its previous powers, we could sell rice as low as ₱29-₱30 per kilo, making it more accessible to consumers while supporting farmers.”

Tulfo Recommends Executive Order

House Deputy Majority Leader Erwin Tulfo suggested that the President issue an Executive Order (EO) to immediately release the NFA’s buffer stock of six million bags of rice to address the problem.

“We might all be dead if we wait for a new law,” Tulfo quipped, urging swift action.

Tiu Laurel assured lawmakers that the Department of Agriculture’s legal team would review the proposal.

Current Rice Prices

According to the DA’s price monitoring (December 2-7), the current rice prices in NCR markets are:

  • Local Commercial Rice
    • Special: ₱59.71/kg
    • Well-milled: ₱47.05/kg
    • Regular-milled: ₱43.60/kg
  • Imported Commercial Rice
    • Special: ₱58.75/kg
    • Well-milled: ₱46.90/kg
    • Regular-milled: ₱44.50/kg

With calls for decisive measures, the government is under pressure to act swiftly to make rice more affordable for Filipinos while ensuring farmers’ livelihoods remain sustainable.

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