NFA and the rice problem

There is something wrong with the way the government is handling the country’s rice problem. There is the problem of two overlords in the agriculture department, Agriculture Secretary Proceso Alcala and ex-Sen. Kiko Pangilinan. Their functions overlap and this includes even the matter of who should be the “issuing authority” on the imports of rice.

Even the farmers and the other stakeholders are clueless on who to turn to when it comes to policy directives on agriculture matters, most especially on rice.

There are many problems the rice industry is facing—ranging from the lack of drying facilities for palay to the lack of irrigation equipment, and from the bad timing of rice imports to the failure of the National Food Authority (NFA) to act as “buyer of last resort.”

But the biggest problem is that Vietnam’s export price for rice is the country’s price for palay. Thus, the Philippines is fated to remain a rice importer, no matter the government’s bold assertions that it would soon achieve rice self-sufficiency soon.

And for as long as the government continues to fail to deliver on its promises, the problems that beset the rice industry will continue to grow.

In the recent past, the rice industry was hit by two huge problems: the entry of imported rice at a time when rice farmers were beginning their harvest resulting in the pricing of palay below costs (P12 to P13 per kilo); and the failure of the NFA to intervene, meaning to buy at the supposed intervention price of P17 per kilo of palay.

As a result, many rice farmers were hurt financially as the entry of the 200 metric tons of rice in mid-November (part of the 500 metric tons allowed to be imported) served to further dampen rice prices.

Another problem is the failure of the government to provide cheap credit to rice farmers who continue to get their loans from “5-6” operators. As a result, they remain at the mercy of loan sharks, resulting in their inability to better their lot.

The government also appears not too keen on adopting hybrid-rice technology, which, by far, is the most promising avenue for the country to achieve self-sufficiency in rice.

Perhaps, it’s time for the Aquino administration to let just one government agency take charge, such as the NFA. After all, there seems to be genuine leadership now at the NFA, and this could mean a lot for the rice self-sufficiency mantra that President Aquino is advocating.

We understand that NFA officials are dead serious in cleaning their ranks of scalawags. NFA Director Angel Imperial Jr. told me that the agency’s efforts at good governance and transparency meant 54 pending criminal cases filed in court against 42 NFA stock accountable officers.

That platform on good governance would mean a lot in rice policy directions.