The Market Monitor Minding the Nation's Business
By Rose de la Cruz
Farmers’ group SINAG (or the Samahang Industrya ng Agrikultural) is opposing efforts to revive the import powers of the National Food Authority but for government to just allow the agency to use its P17 billion (from last year’s unused procurement budget of P8 billion plus P9 billion this year) for palay procurement from local farmers of some 566,666 metric tons of palay or 351,333 MT of rice
Rosendo So, chair of the Samahang Industriya ng Agrikultura (SINAG) said there is no need to give additional power to the NFA as he opposed proposals to allow the NFA to again import rice.
So said the NFA failed to use its P8-billion budget for palay procurement last year, so the agency has P17 billion this year which it can use to procure 566,666 metric tons of palay or 351,333 MT of rice, the Star reported, adding that this stock would be good for 10 days, or more than the required nine days buffer stock.
Though SINAG is supporting amendments to the Rice Tariffication Law (RA 11203) it should only cover the increase in funding allocation of the Rice Competitiveness Enhancement Fund from the current P10 to P30 billion to ensure more resources for farmers (production to marketing) and to the NFA for its procurement.
“These include P12 billion for cash assistance to farmers tilling three hectares; P6 billion for inbred rice seed, development and propagation; P7 billion for rice farm machineries; P3 billion loan from Landbank and Development Bank of the Philippines; P1 billion for expended rice credit assistance and rice extension services,” So said.
The RTL has nothing to do with the spike in the retail price of rice and the flooding of imported rice in the market, he said.
“If the government wants to sell rice at P30 per kilo, it can be done but it needs to be subsidized by at least P20 to P22 per kilo,” he said.
Speaker Martin Romualdez explained that proposed changes to RTL through House Bill 10381 are intended to make “high-quality rice affordable” to every Filipino. This “marks a significant stride towards strengthening our rice industry and ensuring broader access to affordable, high-quality rice for all,” he said.
“This bill is not just a policy change; it is a powerful pledge to every Filipino. We are committed to ensuring that rice – our staple food – remains affordable and accessible to all,” Romualdez said.
HB 10381 was approved overwhelmingly through a voice vote in plenary session, whose objective is to amend provisions in the five-year-old RTL and bring back the power of NFA to import as well as sell the staple in the market.
Rep. Mark Enverga, chairman of the House committee on agriculture and food security, assured the senators and the public in general that they definitely have “safeguards” in restoring the power of the NFA in helping stabilize the price of rice.
“In fact, NFA will have a very limited presence here – only in case of emergency situations and importation is merely a last resort,” Enverga explained, assuaging fears raised by Sen. Cynthia Villar about the risks of giving back the power to NFA, which may be abused.
House Deputy Speaker David Suarez and Rep. Jude Acidre expressed hope the Senate will change its mind about giving the power back to NFA, citing the history of corruption the agency had in previous administrations.
“Let’s not forget this is not an issue of corruption, but rather an issue of food security and price of rice and we should bring our attention to the main agenda, which is the price of rice, which is food security, that should be our focus,” Suarez said.
Finance Secretary Ralph Recto also backed the changes in RTL, specifically returning the powers of the NFA to help in price stabilization. He wanted the NFA to be able to buy and sell for emergency purposes.
President Marcos had said he would certify RTL amendments as urgent.
Think-tank– Foundation for Economic Freedom– earlier this week to restore NFA’s powers, emphasizing that this would reverse reforms achieved by the RTL.
FEF maintained that higher rice prices are due to factors beyond the control of the RTL such as the Ukraine-Russia conflict, export ban of India and the intensifying conflict in the Middle East.
Meanwhile the Ombudsman’s office lifted the suspension of 72 out of 139 officials and employees of NFA implicated in the anomalous sale of government buffer stocks to select private traders. Those removed from suspension were warehouse supervisors from NFA offices in Regions 3, IV-A; MIMAROPA, 5, 6, 7, 9, 10, 12, 11 and BARMM, who have complied with submitting the required documents and evidence in connection with the case.
The Ombudsman earlier lifted the suspension order on 23 NFA officials on March 16.
Currently, 44 officials and employees of the NFA remain under preventive suspension.