Enhancing the functions of the National Food Authority (NFA) in managing the country’s rice supply chain could help in stabilizing the market price of the staple food, Senator Robinhood "Robin" Padilla said on 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 the 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 the rice price 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 (RCEF) and extend its validity for another six years, to further improve Filipino farmers' competitiveness and income.
Padilla proposed that the NFA should exercise its authority to oversee and 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.”
In filing the measure, the NFA is empowered to require the registration of all grains warehouses and maintain a national database of such registrations; inspect warehouses as necessary to ensure compliance with standards related to rice quality and supply; as well as collect and analyze data on rice trade activities for informed policy and operational decisions.
Padilla suggested the NFA may use existing inventory to supply areas where extraordinary price increases or acute shortages of rice occur; and replenish the inventory used from available sources.
Meanwhile, the Bureau of Plant Industry shall impose appropriate fees and measures for low and non-utilization of Sanitary and Phytosanitary Import Clearance (SPSIC) to ensure the timely arrival of imported rice.
The bill also authorizes the BPI to inspect warehouses where local market players and importers store or keep milled rice. The DA Inspectorate and Enforcement shall be authorized to assist BPI in conducting regular and unscheduled inspections.
While the NFA is authorized to purchase locally milled rice or purchase a percentage of the rice brought in by accredited importers, as necessary.
Further, the NFA shall be granted authority to directly import rice subject to explicit authorization from the President —“solely in circumstances where domestic supply deficits necessitate such imports to stabilize the national rice supply and maintain optimal buffer stock.”
Under the proposed measure, the RCEF shall be extended for another six years, with an annual appropriation of P15 billion.
It also expands the RCEF's mechanization component to include the construction and enhancement of postharvest and processing facilities, including warehouses, grain storage facilities, and drying facilities.
Padilla added that RCEF's credit assistance component shall operate as a revolving fund to ensure loans to eligible beneficiaries.
SB 2672 also allows the Crop Diversification Program to use a portion of excess tariff revenues for rice-based crop diversification training, post-harvest machinery, and facilities, seeds and fertilizers assistance program, solar power irrigation, and a small water impounding system.