The Department of Agriculture (DA) is seeking amendments to the Rice Tariffication Law (RTL) to restore certain regulatory powers of the National Food Authority (NFA), but without reviving its authority to directly import rice.
Agriculture Secretary Francisco Tiu Laurel Jr. told lawmakers that while importation will remain a private sector activity, importers will be required to help build and maintain the country’s rice buffer stock.
“They have to have skin in the game,” Tiu Laurel said during a recent Senate hearing.
“If we aim to have a 20-day rice buffer stock, we’re thinking of a 50-50 split between the NFA and the private sector.”
Under the plan, rice imports would be managed under a controlled allocation system – similar to the Sugar Regulatory Administration’s import program – where accredited traders are given quotas but must also procure palay from local farmers at fair prices.
“With the private sector partly doing the buffer stocking, sourcing from local rice farmers, it will also reduce the cost of buffer stocking for government,” the DA chief added.
Currently, the NFA – stripped of most regulatory powers under the RTL – can only purchase about 5 percent of national palay production due to its limited storage and drying facilities, restricting its role mainly to emergency relief.
Tiu Laurel further underscored the need for government oversight on rice imports to prevent oversupply that could drag down farmgate prices.
“We must regain control,” he said in a subsequent House hearing.
“Rice is a commodity imbued with too much public interest to leave entirely to the private sector.”
He added that attached corporations such as Food Terminal Inc. and Planters Products Inc. could serve as import arms of the government, if necessary.