MANILA: The Department of Agriculture (DA) on Monday backed the proposed amendments to Republic Act 11203 or the Rice Tariffication Law (RTL) to allow the National Food Authority (NFA) to sell rice to markets at a lower price.

The DA issued the statement after President Ferdinand R. Marcos Jr. said he would certify the proposed amendments to RTL as urgent, considering that the NFA’s mandate is now limited to national buffer stocking under RTL.

In an ambush interview, Agriculture Assistant Secretary Arnel de Mesa said the legislative action may be favorable in preparation for the looming La Niña and other emergency cases.

‘Supportive ang DA dun (The DA is supportive of that). Mas maganda kung may ganitong provision lalo na kung may emergency cases. Mas maganda kung makaka-intervene ang NFA and DA doon sa market (It’s better to have this provision especially if there are emergency cases. It’s better if NFA and the DA can intervene in the market),” de Mesa said.

Former Agriculture Secretary Emmanuel Piñol al
so expressed support for the urgent amendment of RTL, saying the NFA may sell rice at around PHP40 per kilogram to PHP45/kg.

Piñol said that at this range, although higher than the original PHP27/kg, the subsidized price is much lower than the current offer of private traders who typically double the market price.

‘I think it is the moral obligation of government to provide an option for the poor consumers na puwede nilang takbuhan at makabili sila ng bigas na makakain nila (to run to and buy affordable rice to eat) three times a day. And that is an obligation of government,’ he said in a separate interview at the Bagong Pilipinas Ngayon.

Piñol also lauded Marcos for the urgency to correct a ‘flawed legislation’ that enabled ‘rice cartel or mafias’ to control market prices.

‘Kailangan ibalik sa supervision ng gobyerno iyong (We need to bring back to the government the supervision of the) rice industry. We cannot allow the state of food of the Filipinos to be controlled by the rice cartel. And I would like
to thank the President for this,’ he said.

He added the PHP20-billion excess tariffs collection from rice importation is nothing compared to around ‘PHP68 billion worth of additional expense’ shouldered by rice consumers.

NFA rice

Meanwhile, de Mesa said the NFA Council has earlier approved a selling price of rice 20 percent lower than the prevailing market price.

‘So halimbawa, PHP50 ang na-monitor na price (example, if the monitored is PHP50) minus 20 percent. So that’s minus PHP10,’ he said, suggesting it shall be around PHP40 per kilogram considering the current market prices.

The 20-percent markdown is applicable if the NFA has three to six months of stocks, he said.

‘So, kung more than six months naman at pwede pa, ay 30 percent lower naman than the prevailing market price na na-monitor ng PSA (Philippine Statistics Authority) (If it’s more than six months and it is still feasible, it can be sold at around 30 percent lower than the prevailing market price monitored by the PSA),’ de Mesa added.

He
said this may be a win-win solution considering that the NFA’s buying, drying and milling costs range from PHP37/kg to PHP39/kg.

The average farmgate price of palay (unhusked rice) is pegged at PHP26.9/kg, with other prices varying from PHP23/kg to PHP30/kg per area.

As of Monday, the prevailing market price of local regular milled rice in Metro Manila is pegged at PHP50/kg, and PHP48 to PHP55/kg for local well-milled rice; while the imported rice is set at PHP48 to PHP51/kg and PHP51 to pHP54/kg for regular and well-milled rice, respectively.

Source: Philippines News Agency