“Returning some of the former powers of the NFA to import grains would give the government more leverage against rising prices.

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A three-pronged Department of Agriculture (DA) offensive involving strengthening its authority over the rice industry through the recent revision of the Rice Tariffication Law, the Anti-Agricultural Smuggling Act, and a name-and-shame campaign of frequent offenders may just do the trick in pushing down prices.
The recently signed amendment to the Rice Tariffication Law (RTL) extended the funding for the rice industry modernization until 2031 and tripled the allocation for it to P30 billion from P10 billion yearly.
The extension of the Rice Competitiveness Enhancement Fund (RCEF) gives Agriculture Secretary Francisco P. Tiu Laurel Jr. more leeway to realize his vision of a far more modern agriculture sector as the next growth driver instead of being a drag on the economy.
“The increased funding to enhance the rice industry’s competitiveness will boost both rice yields and farm output, benefiting millions of farmers and their families, as well as millions of poor Filipino consumers who need more affordable rice,” Tiu Laurel said.
The mechanization of farms will “improve incomes from rice farming and will attract a new generation of farmers to replace an aging workforce,” he added.
Of the P30 billion allocated yearly for the RCEF, P6 billion will go towards providing high-quality rice seeds, P9 billion for farm mechanization, and P15 billion for extension and training programs, financial assistance to rice farmers, credit, soil improvement, solar-powered irrigation systems, and water impounding projects.
Under the mechanization program of the Philippine Center for Postharvest Development and Mechanization of the DA, agricultural machinery will be distributed for free to all rice-producing provinces.
The use of technology is expected to reduce postharvest losses by up to eight percent from the current five percent, resulting in savings enough to feed about 3.4-million mouths a year.
Once fully implemented, mechanization will cover 1.73-million hectares, improving productivity, lowering farming costs, and enhancing efficiency.
Changes in the RTL also give the DA more teeth by giving the agency the authority to monitor rice reserves, while the National Food Authority (NFA) will be limited to selling rice buffer stocks to government agencies and the public through Kadiwa ng Pangulo centers in areas experiencing rice shortages or extraordinary price increases.
Tiu Laurel, however, said returning some of the former powers of the NFA to import grains would give the government more leverage against rising prices.
The revitalized measure would allow the DA to replenish rice buffer stocks from importation when local production is low.
The President is also empowered under the new RTL to authorize rice imports at a lower tariff rate for a limited period or specific volume or suspend it.
Those exploiting the market amid the rising demand have been warned their import licenses would be revoked and their names splashed on all information channels.
The BPI, an agency of the DA earlier accused of collusion with the trading cartels, has blacklisted 10 companies in the past six months.
The licenses of the blacklisted firms have been revoked, and those without government permits have been banned.
“We have blacklisted more companies in the past six months than in the past six years. This should serve as a clear warning to those who attempt to challenge our resolve in going after smugglers and unscrupulous traders,” Tiu Laurel said.
The agricultural anti-smuggling law provides severe penalties on violators. The intensified effort is expected to bear fruit within the final three years of the administration of President Ferdinand Marcos Jr.
The anti-Marcos forces are ridiculing the P20 per kilo rice target but the unrelenting and systematic campaign to bring prices down is unprecedented. Prices are leveling off against the global trend where inflation in most nations is shooting through the roof.

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