The Department of Agriculture (DA) said global fears of a rice shortage resulting from the adverse possible impact of El Niño phenomenon has pushed palay prices higher benefitting Filipino farmers.
This developed as local farm groups yesterday called for the comprehensive review of the Rice Tariffication Law (RTL) as prices of the staple food grain continue to increase.
Leo Sebastian, DA Undersecretary for rice industry development, in a statement cited data from the Philippine Rice Information System which showed average dry palay prices rose 6.6 percent to P19.5 per kg in the first half of the year from P18.3 per kg from in the same period in 2022.
Fresh palay prices went up 9.4 percent to P17.4 per kg from P15.9 per kg.
Sebastian also cited data from the DA national rice program which showed palay prices in March 2023 rose to P17.69 per kg for fresh and P19.73 per kg for dry compared to P15.99 per kg for fresh and P18.41 per kg for dry the same month last year.
Sebastian added for April, the price of fresh palay was at P17.66 per kg and P20.38 per kg for dry palay compared to April 2022’s P15.57 per kg and P17.95 per kg, respectively.
RTL review
Ronnie Manalo, secretary-general of the Kilusang Magbubukid ng Pilipinas (KMP) said the pronouncement of President Ferdinand Marcos Jr., concurrent agriculture secretary calling for a review of RTL is “just an empty statement meant to appease the public over skyrocketing rice prices” as he has not stopped the planned importation of 500,000 metric tons of rice.
KMP said the RTL calls for a mandatory review at the end of its sixth year of implementation to determine whether or not the collected fund from tariffs and its use shall be continued, amended or terminated.
The Federation of Free Farmers (FFF) said it also welcomes the government’s push to review the RTL and its effects to the local rice sector.
“Essentially, RTL has left food security and farmers’ and consumers’ welfare to the vagaries of the so-called free market and the humanitarian graces of rice-exporting countries. It has tied government’s hands in addressing spiralling rice prices and export bans, among others.
We therefore expect and demand that the review and amendments of the RTL look deeply into its basic assumptions, objectives and major provisions,” said Leonardo Montemayor, FFF chairman, in a separate statement.
The Samahang Industriya ng Agrikultura (SINAG) said the review of the RTL is being pushed by incumbent DA officials to restore the National Food Authority’s (NFA) capacity to import rice.
Jasyson Cainglet, SINAG executive director, said there was no direct order from the President on the importation of rice and is being pushed by some DA officials.
Cainglet said the RTL does not mandate the DA to pursue an unimpeded rice import policy and is also not stopping the NFA to increase its palay buying price.
“The problem is not the RTL but the penchance of DA and NFA to promote and support importers,” Cainglet said.
NFA abolition backed
Senators yesterday,backed the earlier call of SINAG to abolish the NFA for relying too much on importation rather than buy rice from local farmers.
Senate minority leader Aquilino Pimentel III and Senator Francis Escudero said if NFA does not keep up to its mandate of having ample rice supply for the country, then the call of the agri group should be heeded by the government.
“If NFA is filling up its buffer stock with imported rice, then NFA has a lot of explaining to do. And if NFA really turns out to be an agency which cannot fulfill its role, then I am open to the idea of abolishing,” Pimentel said in a Viber message to the media.
“It is basically a statement that the NFA has become inutile and that government is simply relying on imports…without investing enough on agriculture with a view to increasing production and thereby providing food security for our country,” Escudero said.
SINAG president Rosendo So in a statement issued the abolition call after reports said NFA prefers to import rice from India and Vietnam.
So said funds intended to buy local produce might be used to purchase imported rice from India and Vietnam, which is against the administration’s aim to boost local rice production.
Up by P15
Based on public markets monitoring by the DA in the National Capital Region as of yesterday, the per kg price of imported rice ranged from P50 to P65 for special variety; P47 to P56 for premium and; P40 to P46 for well milled.
No data is available on the price of regular milled.
For local rice, special variety was at P54 to P62 per kg; premium at P48 to P60 per kg; well-milled at P45 to P57 per kg; and regular milled at P55 per kg.
Compared to the earliest monitoring of the DA for the year, the price of some rice varieties are now higher by P15 per kg at most.
DA’s monitoring as of January 2, price range of imported rice for special variety is at P46 to P54 per kg; premium at P43 to P48 per kg; well-milled at P40 to P44 per kg; and P37 to P38 per kg for regular milled.
Meanwhile, for local rice, special variety is at P48 to P60 per kg; premium at P40 to P48 per kg; well-milled at P38 to P44 per kg; and regular milled at P35 to P40 per kg.
