The National Food Authority (NFA) said on Tuesday that Republic Act 11203, or the Rice Tariffication Law (RTL), has disabled the government from intervening in stabilizing the sales of rice in the local market.

“We think that after RTL, the government's hands are tied to intervene in the market to hopefully stabilize the price, particularly rice,” NFA officer-in-charge administrator Larry Lacson said in a radio interview.

Meanwhile, he said that the proposed creation of the Rice Industry Development Program Management Office (RIDPMO), among the amendments to the 2019 passed law, will help ensure more coordinated management of the government’s rice programs.

“In my opinion, it is only right that the operation and management of the program should be done in unison when it comes to palay... in the rice industry, because right now the Rice Competitiveness Enhancement Fund (RCEF) is separate, there is also a National Rice Program, so when the project management office is placed, we have one who will manage, which is what I think is right,” Lacson said, noting that the RTL and NFA can help regulate rice prices in times of emergencies in case some traders are thinking of taking advantage of the situation.

“If it can be put on RTL's amendment that the government can step in in cases of emergency or, let's say, unusual price movements in the market, it will be a big hindrance to traders who can think of taking advantage. The government is a big deterrent to fraud if there is one,” he said.

Lacson further thanked the farmers who contributed to filling the NFA’s rice inventory.

“We are grateful that the farmers cooperated in filling our buffer stock. We are happy, and we will continue our duty to improve the welfare of our farmers and, of course, the people in general,” he said.

The Department of Agriculture (DA) on Monday backed extending RTL stemming from the “lack of significant investments in agricultural infrastructure over the past 27 years.”

DA also lodged an increase in the funds allocated to farmers from the RTL to increase their productivity and competitiveness through mechanization, the use of technology, and the provision of inputs like seeds and fertilizer.

However, agri chief Francisco Tiu Laurel Jr. said that revisions to the law are needed due to climate change, which has reduced the frequency of El Niño events to three to five years.

Besides the creation of the RIDPMO, which will serve as the Secretariat of the RCEF, the DA’s proposed major amendments include strengthening the role of the NFA as a price stabilizer by restoring its ability to import, if needed, to boost domestic supply, but only through the authority of the DA secretary.

More than P15 billion was also requested by the agency from rice import tariffs to support programs for financial aid to farmers, crop variety, water management, irrigation with solar power, and extending the RCEF until 2030.

This includes funding for farm equipment, storage, processing, seeds, training, and pest control to improve rice production.

NFA chief Lacson said that as for his team, “whatever we ordered to do, if that is to speed it up and give us a new job, all we will do is improve how to implement it.”