The Department of Agriculture (DA) said it has been putting the final touches on a draft bill that would restore critical functions of the National Food Authority (NFA) in stabilizing rice supply and prices in the country.
The DA said in a statement on Sunday the draft bill will be central to securing the national buffer stock and in stabilizing palay farmgate prices as well as rice retail prices.
Agriculture Secretary Francisco Tiu Laurel Jr. said the bill seeks to amend key provisions of the Rice Tariffication Law (RTL) to grant NFA certain regulatory powers to better manage buffer stocks, regulate rice distribution and marketing, set a floor price for palay, and support farmers’ cooperatives and recipients of the Rice Processing Systems funded under the Rice Competitiveness Enhancement Fund (RCEF) of the RTL.
Notably, despite the amendment of the RTL in late 2024, the NFA has remained restricted from importing rice to boost stock or directly sell to the public.
Prior to the amendment, the original version of the RTL passed in 2018, liberalized the country’s rice sector and limited NFA’s powers to the maintenance of the country’s national rice buffer stock for 15 days by buying solely from local sources to provide the staple food during emergencies, calamities or a national food emergency, as well as the bidding out of aging stock.
“This is one of several measures House Speaker Ferdinand Martin Romualdez asked the DA to craft to help the government advance its food security agenda, particularly the program of President Marcos to sustain the P20-per-kg rice (of the NFA) for vulnerable sectors through 2028,” Tiu Laurel added.
The DA said the proposed bill would refine protocols and empower the agency to lead rice importation when necessary, and respond swiftly to supply shortages and sudden spikes in commodity prices.
The agency added that the proposed measure would give the NFA greater flexibility in managing the appropriate level of the rice buffer stock and ensure its optimum quality in support of the P20/kg rice goal and broader government efforts to stabilize prices and protect both producers and consumers.
Meanwhile, NFA Administrator Larry Lacson said that these changes would address market inefficiencies and promote fairness, especially for farmers who work the land for months “but remain the most disadvantaged.”
“For the NFA, this means becoming more efficient, more responsive, and financially stronger,” he added.
The Samahang Industriya ng Agrikultura (SINAG) welcomed any moves that would institutionalize floor prices to guarantee decent incomes for farmers.
Jayson Cainglet, SINAG executive director, said in a message that farmgate prices should be at least 20 percent above production cost.
“In the meantime, sans floor price, the palay procurement budget must be increased five fold for the NFA-DA to have effective intervention in farmgate prices. Current procurement budget will only capture 2 percent of our total palay output,” Cainglet said.
Based on the DA’s monitoring of public markets in the National Capital Region, local well-milled rice sold for P38 to P48 per kg on Thursday, June 19, while regular milled rice went for P30 to P45 per kg.
Imported well-milled rice was selling for P38 to P48 per kg while the price of imported regular milled rice ranged from P35 to P45 per kg.
Special-variety imported rice fetched P55 to P61 and premium rice, P42 to P50.
Special-variety local rice was selling for P50 to P65 per kg while premium rice went for P44 to P60 per kg.
These varieties are priced based on regular market forces and factors, and are not subsidized.
