The National Food Authority (NFA) has urged lawmakers to fast-track the passage of House Bill No. 1 or Rice Industry and Consumer Empowerment (RICE) Act.
This bill measure seeking to reform the Rice Tariffication Law (RTL) and restore the agency’s regulatory powers to better support Filipino farmers and stabilize rice prices.
In an interview with DZRH Dos Por Dos, NFA Administrator Larry Lacson said the current system, where the NFA only accounts for 5% of total palay procurement—is insufficient to influence market prices.
Despite exceeding procurement targets in the first half of the year and selling rice at P20 per kilo, NFA has failed to protect farmers from plunging palay prices driven by the influx of cheap imported rice.
“Yung intensyon po natin na mapataas ang presyo ng palay na bili ng mga traders… mukhang hindi nakainfluence sa merkado. Ibig sabihin po yung 5%, hindi pala niya kayang impluwensyahan yung merkado 95% po yung kabila vs. 5%,” Lacson admitted.
The NFA currently buys fresh palay at P18 and dry palay at P20, Lacson also emphasized that the agency refuses to procure any lower than P18.
“Hindi po kami bumibili ng mas mababa sa P18,” he said.
However, with the rise in imported rice, which industry sources say has a landed cost of as low as P20 per kilo—traders are reportedly offering farmers as little as P8 to P12 per kilo for their harvest.
“Bumagsak ang presyo ng world market ang mura-mura ng imported, so isa ‘yan sa nakaapekto talaga,” Lacson said.
According to Lacson, the liberalized of the Rice Tariffication Law (RTL) or Republic Act No. 11203 has tied the hands of government agencies such as the agency, limiting their ability to effectively manage rice supply and protect farmers from price fluctuations.
"At yun sa volume dahil nga po doon sa RTL mukhang tali ang kamay ng gobyerno diyan kasi liberalize nga po yan. Isa nga po sa pinupush natin nila Secretary Kiko na maamyendahan talaga itong RTL," Lacson said.
He also explained that under the RTL, the NFA is no longer allowed to issue import permits or intervene directly in the market.
The Department of Agriculture (DA) and NFA have reportedly proposed measures to suspend or modify certain provisions of the RTL, especially during harvest periods, to prevent further losses among local rice farmers.
However, those proposals failed to pass in Congress.
"Dapat hindi po niliberalize, ang tingin natin lalo na sa panahon ng ating anihan dapat wala muna at 'yun naman ang napropose ng NFA at DA sa Kongreso ngunit hindi nakapasa," he emphasized.
In connection, Lacson also expressed support for newly reelected Leyte Representative and House Speaker Ferdinand Martin G. Romualdez and Senator Raffy Tulfo, who filed House Bill No. 1 at the opening of the 20th Congress.
The bill seeks to empower the NFA to register and license grain warehouses, conduct inspections, and monitor rice trading to curb hoarding, profiteering, and price manipulation.
It will also give the agency authority to seize hoarded rice stocks and release them to the public in cases of artificial shortages or price spikes.
Moreover, the RICE Act mandates the NFA to maintain buffer stocks sourced strictly from local palay and gives it power to set and enforce a floor price for palay purchases.
This aims to ensure that farmers can sell at fair and stable prices while consumers can buy affordable and consistent rice supply.
“Kami po ay natutuwa na muli itong bubuksan at kita natin ang hinaing ng mga magsasaka. Sana naman po ay pakinggan at tingnan ng sa gayon po ay masolusyunan natin ng hindi band-aid. Yung pangmatagalan,” he said.
The National Food Authority (NFA) also assured the public that it has enough funds in place for the upcoming wet season harvest, with P8 billion already allocated for palay procurement.
“Nasa walong bilyon po ang itinabi natin para po sa anihan [sa] tag-ulan,” said Lacson.
