RTL tweak hurdles House

The House of Representatives has approved a bill that would return some primary functions to the National Food Authority (NFA) through an amendment of the Rice Tariffication Law (RTL).

The revisions in the law are widely perceived to help drive down the price of rice.

With a vote of 231-3-1, House Bill (HB) 10381 breezed through the plenary on Tuesday, a day before Congress adjourns sine die.

The measure seeks to modify Republic Act 8178, or the Agricultural Tariffication Act, previously amended by the RTL.

The bill will still have to be approved by the Senate and pass through the bicameral conference committee before its signing by President Ferdinand Marcos Jr.

If enacted into law, the bill will revive several NFA functions, including its price stabilization and supply regulation authority, which was removed under the RTL enacted in 2019.

It would also allow the NFA to use its buffer stocks to supply areas facing a rice shortage, a sustained increase in price, or an extraordinary increase in the price of rice.

This condition falls under a food security emergency, which the Agriculture secretary may declare upon the recommendation of the National Price Coordinating Council and the Local Price Coordinating Council.

In times of food security emergency, the country could resort to importation only if no local stocks from the NFA are available.

NFA will regain muscle

The proposal also seeks to restore the NFA’s warehouse registration and monitoring powers “to ensure compliance with all pertinent standards and regulations, leveraging its established expertise and nationwide network to uphold the national interest in rice buffer stocking and food security.”

House leaders are keen that amending the RTL, which would permit the NFA to enter the domestic rice market anew, will lower the cost of the staple grain by at least P10 to P15 per kilo, nearing the P30 per kilo mark.

Currently, rice prices are pegged at P60.81 and P51.63 for local special and well-milled, respectively.

While the bill successfully mustered support from the House, its prospects remain unclear in the Senate.

Earlier, Senator Cynthia Villar, chairperson of the Senate Committee on Food and Agriculture, said the “majority” of senators were against reinstating the NFA’s regulatory and import licensing functions, citing previous instances in which the agency was embroiled in corruption scandals.

She contended that Congress should instead pass the proposed Anti-Agricultural Economic Sabotage Law, which would impose severe sanctions on smugglers, hoarders, and cartels believed to be the culprits behind the soaring prices of the staple grain.

In March, the Ombudsman suspended 141 NFA officials, including Administrator Roderico Bioco, for allegedly selling 75,000 bags of “aging” and “deteriorating” rice buffer stock to private traders. The supplies, reportedly re-bagged and sold at a higher price, were later deemed fit for consumption.

Members of the House are adamant that their proposal has enough safety nets to ensure that there will be fewer chances for corruption in the NFA.