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NFA struggles with managing rice stocks amid restrictions under Rice Tariffication Law
NFA struggles with managing rice stocks amid restrictions under Rice Tariffication Law
Nation
NFA struggles with managing rice stocks amid restrictions under Rice Tariffication Law
by Mary Antalan16 December 2024
Courtesy: National Food Authority

The National Food Authority (NFA) is grappling with the challenge of managing millions of rice stocks, as the recently signed amendment to the Rice Tariffication Law (RTL) restricts its ability to release these reserves.

Republic Act No. 12078, enacted on December 9, 2024, introduces significant adjustments to the role of the NFA. While it seeks to restore some of the NFA’s functions removed under the original RTL, it also imposes specific restrictions and conditions, such as regulated buffer stock use, direct import restrictions, and market intervention conditions. These amendments are said to enhance food security, boost the competitiveness of the rice industry, and support Filipino farmers while maintaining stable rice prices for consumers.

According to NFA Administrator Larry Lacson, the agency currently holds 5.55 million 50-kilogram bags of milled rice—equivalent to approximately 8 million sacks of palay. These stocks were purchased during the summer harvest (April to May) and the early rainy season, ensuring that the rice is fresh and not prone to spoilage.

Lacson emphasized that all the rice stocks were procured from local farmers, as mandated by the RTL. The NFA purchased palay at an average price of ₱27.45 per kilogram, providing local farmers with fair market rates.

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"Sa personal kong opinyon at aking ugnayan ko sa mga magsasakay ay talagang masaya yung mga nakabenta po sa NFA," Lacson shared.

Under the RTL, the NFA is only authorized to release rice stocks during calamities and emergencies, selling primarily to government agencies such as the Office of Civil Defense (OCD), the Department of Social Welfare and Development (DSWD), and local government units (LGUs).

"Bago po ito maging for human consumption syempre po hindi naman po lahat binebenta natin. ito po'y binebenta natin sa mga government agencies din na nangangailang nito tulad ng BJMP," Lacson explained.

Despite the NFA’s commitment to supporting local farmers, its limited mandate has resulted in the underutilization of its buffer stock. Lacson revealed that as of the latest data, only 700,000 bags out of their 6 million total stock had been released.

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"Just imagine kung mayroon tayong 6 million bawasan mo ng 700 [thousand] edi mayroon pa tayong 5.3 million bags. Ano po ang gagawin natin dyan kung walang kalamidad?" Lacson questioned.

He noted that the highest volume of rice distributed by the NFA was during the pandemic in 2020, when 6.2 million bags were released nationwide.

"Just imagine buong Pilipinas na po 'yun ganon lang ang nadistribute natin 6.2 million bags, paano po ngayon na hindi naman siguro magkakaroon ng pandemic," he remarked.

The Department of Agriculture (DA) and the NFA’s legal team are studying the possibility of selling rice stocks in public markets or through programs like Kadiwa. However, Lacson highlighted that the RTL’s new provisions do not explicitly allow such sales.

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"Pwede kami sa Kadiwa pero kailangan mayroong deklarasyon ang National Rice Coordinating Council of the Secretary na mayroong kakulangan ng bigas. Mayroong mabibigat na condition bago makapagbenta sa Kadiwa ng regular stocks," Lacson explained.

Without the ability to release these stocks, the NFA is concerned about storage limitations for the upcoming harvest season.

"Kapag walang paglalagyan, mapipilitan kaming i-slow down ang aming pagbili," said Lacson.

Meanwhile, the Philippines is projected to remain the world's top rice importer in 2024, importing an estimated 3.8 million metric tons (MT), according to the United States Department of Agriculture (USDA).

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This marks a continuation of its leading position since 2023, surpassing other major importers like China and Indonesia. The bulk of these imports come from Vietnam, a key supplier to the country​.

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