The Department of Agriculture (DA) of the Philippines has formally requested President Ferdinand Marcos Jr. to approve a buffer fund aimed at purchasing rice and other essential commodities to counter price manipulation and ensure affordability. This request, articulated by DA Assistant Secretary Paz Benavidez II, came during a public hearing with the House agriculture and food committee.
Initiative to Utilize Buffer Fund Under Price Act
In her statement, Benavidez explained that the initiative falls under the provisions of the Price Act, which allows the DA to establish a buffer fund for procuring agricultural commodities like rice and corn. The fund is intended to support the stockpiling of these commodities to stabilize market prices during periods of price hikes or supply shortages. This initiative comes as an extension of the government’s efforts to make essential food items available at reasonable prices, especially in Kadiwa stores and other retail markets.
Challenges Posed by the Rice Tariffication Law
The request for a buffer fund also addresses challenges posed by the Rice Tariffication Law (RTL), which restricts the National Food Authority’s (NFA) ability to sell rice directly to the public, limiting its role to maintaining sufficient buffer stocks. The proposed buffer fund would enable the DA, through the NFA, to intervene in the market under specific conditions laid out in the Price Act to prevent hoarding and price manipulation.
Implementation and Impact
Once the President approves the implementing rules and regulations (IRR), the DA will be able to use the buffer fund to purchase sensitive products for stockpiling. According to Benavidez, these stockpiles would be released into the market through Kadiwa stores to stabilize prices as needed.
“The DA has prepared the IRR, subject to the approval of the President. That is what we are doing right now,” Benavidez stated, highlighting the urgency and proactive stance of the DA in addressing food security and price stability.
Calls for Restoring NFA’s Mandate
House Deputy Majority Leader Erwin Tulfo, during the hearing, advocated for restoring the NFA’s former mandate to sell the cheapest rice in the market, emphasizing that this is crucial for supporting minimum wage earners and their families. Tulfo pointed out the limitations of the current setup, where not all towns have access to Kadiwa stores, which operate only a few times a week.
Concerns Over NFA’s Current Role
Tulfo also criticized the NFA’s reduced role, which he argued should not be limited to just maintaining buffer stocks but should include active participation in the market to prevent shortages and price spikes. He referenced recent controversies where the NFA was investigated for allegedly selling rice at a bargain price to retailers without proper bidding, suggesting that such issues could be avoided if the NFA were more involved in direct market activities.
Conclusion
The DA’s request for a buffer fund underlines the government’s commitment to safeguarding consumer interests and ensuring the affordability of basic commodities like rice. The approval of this fund by President Marcos could mark a significant shift in how agricultural commodities are managed in the Philippines, potentially leading to more stable and predictable pricing for consumers.
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