Philippine House Approves Rice Tariffication Law Amendments on Final Reading
The House of Representatives of the Philippines approved on final reading the measure seeking amendments to the Rice Tariffication Law (RTL). The chamber approved House 10381, which seeks to restore the price stabilization and supply regulation functions of the National Food Authority (NFA), with 231 affirmative votes, 3 negative votes, and 1 abstention.
Representative Wilbert Lee of the Agri Party-list said that the NFA’s role would be an “equalizer” by purchasing unhusked rice or palay from local farmers at a higher price and selling it to consumers at a lower price.
“Under the RTL, this [market intervention] mandate of the NFA was removed. The only mandate left to them is to buy buffer stock. This is the most important mandate that we want to restore by amending the RTL. That’s what we want to happen: To restore the NFA’s mandate to buy high and sell low,” Lee said.
The bill proposes that the Department of Agriculture (DA) Secretary, upon the recommendation of the National Price Coordinating Council (NPCC) or Local Price Coordinating Council (LPCC), may declare a food security emergency when there is a shortage in the supply of rice, sustained increase in the price of rice or extraordinary increase in the price of rice.
In the occurrence of such cases, the NFA may use existing inventory, primarily intended for buffer stocking, to supply areas where price increases or supply shortages happen.
The RTL amendments also mandate the maintenance of sufficient buffer stock requirements sourced from local farmers’ organizations and cooperatives. The NFA is allowed to, in the following order, purchase locally milled rice; purchase up to a maximum of 30 percent brought in by accredited importers at cost; and as a final recourse, once all domestic sources have been exhausted, directly import rice, subject to explicit authorization from the agriculture secretary, if the buffer stock requirement is still not sufficient.
The proposed measure authorizes the NFA to require registration of all grain warehouses and conduct inspections to ensure compliance with rice quality and supply standards. According to the bill, the functions would allow the NFA to leverage its “established expertise and nationwide network to uphold the national interest in rice buffer stocking and food security.”
The bill also proposes that the base amount of the Rice Competitive Enhancement Fund (RCEF) be increased from the current PHP 10 billion to PHP 15 billion.
Earlier, President Ferdinand R. Marcos Jr. certified the bill proposing to amend the RTL as urgent, citing the need for the government to have control or influence the local rice market. The RTL amendment is expected to bring down the price of rice from PHP 10 to PHP 15 per kilogram.
