THE Department of Agriculture (DA) proposed to legislators that Food Terminal, Inc. (FTI) and Planters Products, Inc. be granted the power to import rice on behalf of the government.
The proposal follows efforts to amend the Rice Tariffication Law, which had stripped the National Food Authority (NFA) of its import powers and opened up the import trade to private traders.
In a statement, the DA cited the need to exert regulatory power over rice imports to prevent oversupply, which it said has “depressed” farmgate prices earned by domestic farmers.
“We must regain control,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said. “Rice is a commodity imbued with too much public interest to leave entirely to the private sector.”
At present, the NFA is required to build up its rice reserves by procuring domestic rice, but it can only purchase about 5% of the palay (unmilled rice) harvest “due to limited warehousing and drying capacity,” the DA noted.
It added that the NFA’s impact on the market is limited to releasing rice during calamities.
The DA said if needed, government corporations under its umbrella like FTI and the Planters Products “could import on behalf of the government.”
“The proposed changes aim to strike a balance between ensuring affordable rice for consumers and protecting the livelihoods of Filipino rice farmers,” it said.
The DA, however, clarified that the rice import function will remain largely with the private sector.
Mr. Laurel has told the Senate that private importers should be required to share the responsibility of maintaining the country’s rice reserves.
“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,” he said.
Under the proposed setup, rice imports will follow the sugar import model, under which the Sugar Regulatory Administration issues import allocations only to qualified importers.
Rice importers will also be required to maintain their reserves by procuring palay from domestic farmers at fair prices.
A private sector role in maintaining the buffer stock, sourced from local rice farmers, will also reduce the cost to the government of maintaining its rice reserve, Mr. Laurel said. — Kyle Aristophere T. Atienza