DA chief wants NFA regulatory, other powers restored to bring down rice prices

Agriculture Secretary Francisco Tiu Laurel on Wednesday called for the restoration of the regulatory powers of the National Food Authority (NFA) to bring down rice prices.

Tiu Laurel was referring to NFA’s previous regulatory powers stripped from the agency due to the passage of the Rice Tariffication law (RTL) in 2019, which prohibited the NFA from buying, selling and importing rice, as well as limiting its mandate to managing buffer rice stocks.

Instead, the RTL allowed private entities to import rice without limit, envisioned to bring down the prices of rice due to larger supply.

Tiu Laurel said the NFA having the authority to regulate allows it to have the database of rice traders, as well as ensure that NFA can intervene by importing rice when the need arises.

“Well, number one, NFA dati lahat ng rice trader, kailangan naka register [sa NFA]. Ngayon, wala na eh. So kapag hindi sumunod sa usapan ang rice trader, dati, pwede tanggalan ng NFA ng license to operate,” the Agriculture chief said on the sidelines of a public hearing on bringing down prices of basic commodities in the House of Representatives.

(Before, rice traders are required to register with us. Since it is not the case anymore, we cannot revoke their license to operate if they engage in unfair practices.)

“Dati iyong NFA, iyong stock din ng bigas na binili locally, pwede niyang ibenta sa palengke. Ngayon, hindi. [Dati], pwede rin niyang ibenta sa LGU para maibenta ng mura [ng LGU sa mamimili]. Ngayon, hindi na rin pwede. Dati, pwede ‘yung NFA mag-import para i-address iyong kakulangan. Ngayon, hindi puwede. Kaya malaking bagay talaga na maibalik iyon,” Tiu Laurel added.

(The NFA was previously allowed to sell NFA rice in the market, but not anymore. We were also previously allowed to sell to LGUs, so they can sell it at a lower price to their constituents. But we’re not allowed to do that anymore. Previously, we were also allowed to import so we can intervene if there is shortage. That is not the case. So it would really be a big help if these mandates can be restored.)

President Ferdinand Marcos Jr. signed an amended Rice Tariffication law this week which partially restored NFA’s previous mandate by allowing the agency to sell its rice buffer stocks in Kadiwa ng Pangulo rice centers located in areas experiencing rice shortfall or skyrocketing rice prices.

During the public hearing proper, Tiu Laurel said that there is really a need to restore NFA powers to further bring down rice prices even if there are already 48 stores selling rice at P40 per kilo.

The Agriculture Department is targeting to expand it to 300 stores by mid-January.

“This [P40 per kilo rice] will be [available] in public markets, not private markets. We cannot enter private markets, by the way. We can only enter public markets. If we could, we are targeting to bring it down further to P38, P39 per kilo by January. That would be a significant coverage [of stores with affordable rice],” Tiu Laurel said when asked by House Deputy Majority Leader Erwin Tulfo of ACT-CIS party-list on what the DA is doing in bringing down rice prices.

“We can lower the price further, but the problem is, we need Congress' help to bring back the powers of NFA. As it is, NFA has no more power to produce more and make the farmers’ [source of livelihood] profitable. We don’t have the power to stabilize prices because the NFA only functions for buffer stocking.

“We cannot even sell our rice to the LGUs or to our own Kadiwa at a reasonable price. Because of this, at the moment and for the first time, we have almost six million bags of rice as buffer stock. If NFA had its previous powers, we could have sold it as low as P29, P30, P39 per kilo. But we can’t,” Tiu Laurel added.

Tulfo suggested that the DA chief ask the President to issue an Executive Order (EO) to address these concerns.

“We can’t wait for a law here. We might all be dead if we wait for such. Can we recommend to the President to issue an EO for you to release this six billion bags of rice? That would feed a lot of people,” Tulfo said.

Tiu Laurel, in response, said the DA’s legal team will consider Tulfo’s recommendation.

Based on the DA’s price monitoring in NCR markets for the period December 2-7, the prices of varieties of local commercial rice are as follows:

• special - P59.71 per kilo
• Well milled - P47.05 per kilo
• Regular milled - P43.60 per kilo

For imported commercial rice, the prices are as the following:

• special - P58.75 per kilo
• Well milled - P46.90 per kilo
• Regular milled - P44.50 per kilo

— with Ted Cordero/RSJ, GMA Integrated News