Lawmakers should consider restoring the market regulatory functions of the National Food Authority (NFA) as a means to make rice cheaper, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said. Wednesday.
During a hearing in the House of Representatives committee, Mr. Laurel said NFA regulations would help control rice prices. He added that he sees P42 to P49 per kilo as an appropriate price instead of the current P50 to P60.
“The NFA lost its power to intervene in the market, as it used to. At the same time, the DA (Department of Agriculture) also lost its power to control and stabilize rice prices,” he told lawmakers.
“If the power of the NFA… could be restored, the DA would be more effective in curbing the abuses of rice traders and provide better information.laffect rice prices,” he added.
In November, the Philippine Statistical Authority reported an average price for plain rice of P49.24 per kilo, while well-milled rice fetched P54.64. The average per kilo of special rice came to P63.
Lawmakers are exploring the possibility that rice prices are being kept artificially high by a cartel and are not allowed to drop to their natural levels even after President Ferdinand R. Marcos Jr. ordered the rice tariffs to be cut.ffS.
“(Rice is still sold) for P50, up to P60. That’s not right. Unfortunately, we don’t have the power to catch anyone in the market because we don’t have enforcement powers,” Mr Laurel said.
The Rice Tariff Act of 2019 liberalized rice imports and removed the NFA’s authority to intervene in the rice market. Instead, it imposed tariffs on rice imports of initially 35% and currently 15% – the proceeds of which were intended to finance the modernization of the rice industry.
The law prohibited the NFA from releasing its rice reserves to the market, limiting its power to intervene in times of disaster. It also revoked the NFA’s licensing powers over rice operators.
“Restoring power to the (NFA) would make a significant difference,” Mr. Laurel said. — Kenneth Christiane L. Basilio