LEGISLATORS need to consider reinstating the National Food Authority’s (NFA) market regulatory functions as a means of making rice cheaper, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said on Wednesday.
Speaking at a House committee hearing, Mr. Laurel said NFA regulation would help control retail rice prices, adding that he sees P42 to P49 per kilo as an appropriate price rather than the current P50 to P60.
“The NFA lost its power to intervene in the market as it used to. Along with this, the DA (Department of Agriculture) also lost its power to control and stabilize rice prices,” he told legislators.
“If the NFA’s power… could be restored, the DA would be more effective in curbing the abuses of rice traders and better influence rice prices,” he added.
In November, the Philippine Statistics Authority reported an average price for regular-milled rice of P49.24 per kilo, with well-milled rice fetching P54.64. The average per kilo of special rice stood at P63.
Legislators are looking into the possibility that rice prices are being kept artificially high by a cartel, and have not been allowed to fall to their natural level even after President Ferdinand R. Marcos, Jr.’s order cutting rice tariffs.
“(Rice is still sold) at P50, up to P60. That’s not right. Unfortunately, we don’t have the authority to catch anyone in the market because we lack enforcement powers,” Mr. Laurel said.
The Rice Tariffication Law of 2019 liberalized rice imports and removed the NFA’s authority to intervene in the rice market. It instead charged tariffs on rice imports of 35% initially, and 15% at present — the proceeds of which were to fund the modernization of the rice industry.
The law barred the NFA from releasing its rice reserves onto the market, limiting its power to intervene in times of calamity. It also revoked the NFA’s licensing powers over rice market participants.
“Restoring the (NFA’s) power would make a significant difference,” Mr. Laurel said. — Kenneth Christiane L. Basilio