August 27, 2025 | 12:00am
Below NFA reforms
MANILA, Philippines — The Division of Agriculture (DA) is in search of a brand new system that may make rice importers share duty with the Nationwide Meals Authority (NFA) in sustaining the nation’s buffer inventory as a part of proposed amendments to the Rice Tariffication Legislation (RTL).
In a press release yesterday, the DA mentioned the plan would require accredited merchants to carry a part of the nationwide rice reserve alongside the NFA.
Agriculture Secretary Francisco Tiu Laurel Jr. advised senators final week that the association is supposed to strengthen meals safety with out restoring the state’s outdated import monopoly.
“They need to have pores and skin within the sport. If we intention to have a 20-day rice buffer inventory, we’re pondering of a 50-50 cut up between the NFA and the non-public sector,” Tiu Laurel mentioned.
Below the proposal, rice imports will comply with a managed mannequin just like the Sugar Regulatory Administration’s program, the place solely certified merchants are given allocations.
Importers may also be required to acquire palay from farmers at truthful costs for buffer stocking.
“With the non-public sector partly doing the buffer stocking, sourcing from native rice farmers, it would additionally cut back the price of buffer stocking for presidency,” the DA chief mentioned.
At current, the DA mentioned the NFA can buy solely round 5 % of nationwide palay output, largely for catastrophe aid, due to restricted warehousing and drying services.
Tiu Laurel mentioned the DA should regain some management to forestall oversupply, which has pushed farmgate costs down.
“Rice is a commodity imbued with an excessive amount of public curiosity to go away fully to the non-public sector,” he mentioned.
Earlier than the RTL was signed in 2019, the NFA held near-total management of rice imports beneath its 1972 constitution.
It straight introduced in shipments and decided which non-public merchants might import, a gatekeeping position typically criticized for inefficiency and corruption.
The RTL dismantled this monopoly, opening up rice imports to the non-public sector and limiting NFA’s mandate to buffer stocking and emergency provide.
Tariff collections have been redirected to the Rice Competitiveness Enhancement Fund to help farmers by way of mechanization, seed improvement, credit score, and extension companies.
However farmer teams have since complained of depressed palay costs, whereas customers proceed to grapple with excessive retail prices.
This time, the DA mentioned its proposal goals to strike a steadiness between reasonably priced rice for customers and higher earnings for native producers. — Christine Boton