Manila: Malaca±ang on Wednesday expressed support for the restoration of the National Food Authority's (NFA) power to directly import rice to strengthen its market capability. In a press briefing, Palace Press Officer Claire Castro acknowledged the challenges faced by the grains agency after it lost the power to import rice directly due to the Rice Tariffication Law.
According to Philippines News Agency, Castro explained that the NFA is currently hindered by the requirement to coordinate with local government units (LGUs) before making decisions on rice importation. She emphasized that the existing process prevents farmers from directly accessing the NFA, as they must navigate through LGUs first. "It would be better if the NFA will have its power to directly import rice back. At present, everything they do must go through the LGUs. The farmers cannot go directly to them," Castro stated.
Castro further elaborated on the necessity for the NFA to regain more direct control over rice imports to effectively respond to market needs and support local farmers. She expressed hope that Congress would consider revisiting the Rice Tariffication Act to restore the NFA's authority. "It would really be better for the NFA to have that power again. I hope Congress could review the Rice Tariffication Act to once again empower the NFA," she added.
The Department of Agriculture has been advocating for the restoration of the NFA's market regulatory functions as a strategy to reduce rice prices. The Rice Tariffication Law, enacted in 2019, liberalized rice imports and stripped the NFA of its ability to intervene in the rice market, replacing it with a tariff system.
Critics of the Rice Tariffication Law argue that it diminished the NFA's capability to regulate rice prices and maintain adequate supply, especially during lean months. The law prohibited the NFA from releasing its rice reserves onto the market and revoked its licensing powers over rice market participants.