Why sidestep NFA?

The growing consensus among legislators deliberating proposed changes to the Rice Tariffication Law (RTL) is for the Department of Agriculture (DA) to handle the importation functions that would allow the government to intervene in rice pricing.

The National Food Authority (NFA) would retain its current role of building the buffer stock and providing supply whenever calamities strike.

The push for the amendment, if not abolition, of the RTL is vigorously supported by the rice cartel that has a strong grip around the NFA’s neck.

Before the RTL, the NFA had a monopoly on rice importation which suited the grains mafia well since in effect they were able to corner the purchase of the Filipinos’ staple.

The big rice traders dominated the rice supply through their connections in the NFA, while dictating prices in the international market.

Without competition, the NFA and the foreign rice exporters it dealt with, primarily the Vietnamese, could push up the price of the commodity in the world market since the Philippines had attained the unsavory distinction of being the world’s top rice importer.

The RTL ended the domination of the NFA and, thus, the cartel has since then been discrediting the RTL with the primary aim of returning the importation functions to the NFA.

Hence, the lawmakers have reason to be wary about handing back the trading role to the NFA as the cartel’s minions remain entrenched in the agency.

President Ferdinand “Bongbong” Marcos Jr., however, wants the government to have the ability to influence rice prices, considering he is nearing the halfway mark of his term.

His campaign pledge to bring the price of rice down to P20 per kilo resonated with Filipinos but it remains unfulfilled.

The key, he said, remains in importation, while Agriculture Secretary Secretary Francisco Tiu Laurel Jr. undertakes the comprehensive rice program to raise the productivity of Filipino farmers and thus lower rice prices.

The NFA’s chief task should be to find a balance between giving Filipino farmers a reasonable farm gate price while maintaining a low selling price.

The lackluster performance of the agriculture sector creates a vicious cycle of poverty since the poor producers are relied on to feed the majority of Filipinos who live marginal lives.

Marcos said Congress has found a formula — that is to place the importation functions directly under the DA, which would be incorporated in the RTL amendment.

The suggestion is very practical in terms of speeding up decisions since the scale of intervention that the government assumes will be decided at the highest level such as a Cabinet meeting.

Also, a bigger sense of responsibility is assumed as the alter ego of the President is not expected to collude with traders in dictating global prices, for instance.

Speaker Martin Romualdez said the House will expedite the process of amending the RTL and ensure that the amendments are passed on the third and final reading before the congressional break on 25 May.

A counterpart bill has been filed in the Senate through Senate Bill 2672.

The most essential part of the proposals in both chambers is granting the Agriculture Secretary, upon the recommendation of the National Price Coordinating Council or Local Price Coordinating Council, the authority to declare a food security emergency when there is a shortage in the supply of rice, a sustained increase in the price of rice, or an extraordinary increase in the price of rice.

It is then that the DA chief may exercise the power to import the grain.

What leaves a bad taste in the mouth is that the government or Congress needed to bend backwards to accommodate what is considered a corrupt agency, instead of overhauling it.