Finance Secretary Ralph Recto on Wednesday said amendments to the Rice Tariffication Law (RTL) must not generate huge debts for the National Food Authority (NFA).

While Recto is open to proposals to review the RTL amid threats to the local rice supply, he stressed that the government must “make sure the debts of the NFA do not balloon.”

“I think the RTL is working. Maybe we can tweak it a bit to allow the NFA to import for emergency purposes,” he said.

House of Representatives Speaker Martin Romualdez said the amendments to the RTL aim to bring rice prices below P30 per kilo by the third quarter of the year.

Dry spell limits harvests

The commodity generally sells at P40 to P45 per kilo as the local rice supply continues to be limited by the dry weather.

The NFA buys rice from local farmers at a higher price than private traders and sells the rice at low prices in the market to satisfy the needs of the masses while providing a decent income to farmers.

The amendments will allow the NFA to import rice from accredited vendors and pass the shipping costs and insurance to the exporter.

Apart from this, the NFA will have the authority to directly import rice as ordered by the President.

Improve mandate

Enhancing the functions of the NFA in managing the country’s rice supply chain could help in stabilizing the market price of the staple grain, Senator Robin Padilla said Wednesday.

Padilla filed Senate Bill 2672 seeking the creation of a Rice Industry Development Program Management Office (RID-PMO) to ensure a holistic approach and improve the collaboration of rice-concerned agencies and industry players.

“The present amendatory bill seeks to restore the NFA’s role in managing the country’s supply chain,” Padilla wrote in his bill, as he proposed amendments to the Rice Tariffication Law (RA 11203).

With the renewed and strengthened mandate of NFA in the amendatory bill, Padilla said the stabilization of rice prices will be guaranteed while regulating the supply functions.

“Ultimately, access to cheaper rice will be more feasible for poor Filipinos,” he added.

SB 2672 likewise seeks to increase the Rice Competitiveness Enhancement Fund and extend its validity for another six years to further improve Filipino farmers’ competitiveness and incomes.