The Department of Agriculture (DA) clarified on Tuesday that its bid to restore key powers to the National Food Authority (NFA) through an amended Rice Tariffication Law does not include the authority to import rice. It said private importers must do their share in maintaining the country’s buffer stock.
Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement the government’s current plan is for rice importation to remain with the private sector.
He clarified, however, the DA wants private importers to also share the responsibility of maintaining the country’s rice buffer stock.
“They have to have skin in the game … If we aim to have a 20-day rice buffer stock, we’re thinking of a 50-50 split between the NFA and the private sector,” Tiu Laurel said.
Currently the NFA is mandated to keep a 15-day buffer, sourced only from local farmers, to ensure supply during calamities or emergencies. Its role is limited by storage and drying capacity, allowing it to buy just about 5 percent of the national harvest.
Under the proposed changes, rice imports will follow a controlled model similar to the sugar import program of the Sugar Regulatory Administration, where only qualified importers are given allocations. These importers will also be required to buy palay from local farmers at fair prices for buffer stocking.
“With the private sector partly doing the buffer stocking, sourcing from local farmers, it will also reduce the cost for government,” Tiu Laurel said.
He also reiterated the need for regulatory power over imports to avoid oversupply, which he said has depressed farmgate prices. “We must regain control … Rice is a commodity imbued with too much public interest to leave entirely to the private sector,” he said.
If necessary, attached corporations such as the Food Terminal Inc. and Planters Products Inc. could import on behalf of government, he added.
The DA said the proposed changes are meant to strike a balance: keeping rice affordable for consumers while ensuring fair returns for farmers.
In Metro Manila markets as of August 23, local well-milled rice sold for P38 to P52 per kilo and regular milled rice for P30 to P45.
Imported well-milled rice was at P40 to P50 and regular milled at P30 to P45. Special varieties fetched P50 to P65 for imports and P48 to P65 for local grain, while premium rice ranged from P42 to P60.
