NFA is buying palay intended to be sold to LGUs at low prices – Tiu Laurel

Workers stack rice at a warehouse of National Food Authority (NFA) in Visayas Avenue in Quezon City on Wednesday, January 15, 2020. (INQUIRER file photo / GRIG C. MONTEGRANDE)

MANILA, Philippines — Agriculture Secretary Francisco Tiu Laurel Jr. told the House of Representatives that the National Food Authority (NFA) is buying huge volumes of palay (unhusked rice) which will be then sold cheaply to local government units (LGUs) and Kadiwa stores.

Laurel said this on Monday, even as Congress has not finished deliberating on the amendments to Republic Act No. 11203 or the Rice Tariffication Law (RTL).

These amendments are meant to lower rice prices by allowing the NFA to sell cheap rice again.

“NFA is buying a lot of palay now. Although it’s the last part of the harvest season now, we’ll plan to sell this through LGUs, to Kadiwa (stores) and maybe through DSWD (Department of Social Welfare and Development) and other government agencies that can help,” Laurel said during a meeting with Speaker Ferdinand Martin Romualdez.

“We need all the help we can get so that we can implement this properly,” he added.

READ: Romualdez: Rice prices down P15 if rice tariff law amended by June 

Laurel also hopes Congress can pass the bill that would amend the RTL as it would enable the NFA to sell rice to the public again.

“Well, before, Sir, the hands of the DA (Department of Agriculture) and the NFA are tied due to certain laws that we have, existing. So, we are asking that some things be changed and hopefully this is passed by Congress so that DA and NFA would be given leeway in this rice issue,” he said.

Romualdez and several members of the House have been pushing for the RTL’s amendment, as the law barred the NFA from selling rice directly to the consumers.

READ: Cynthia Villar says no one wants to discard Rice Tariffication Law 

Under the current setup, NFA is tasked with building up a buffer stock which will be used by the government in times of calamities, and as social aid.

READ: Solon vows anti-corruption measures once NFA allowed to sell rice anew 

Romualdez and House members believe that allowing NFA to sell rice to consumers would make the market more competitive and eventually decrease rice prices by P10 to P15 per kilogram — which means rice at P35 to P40 per kilogram may be available in June.

It is unclear whether Congress can approve the amendments, given that the second regular session would just run until May 24.

After then, Congress would go on a sine die adjournment and open session on July 22 — which will coincide with President Ferdinand Marcos Jr.’s third State of the Nation Address.

However, Romualdez said earlier that the House will do everything to pass the proposed amendments, especially as President Marcos Jr. had vowed to certify the bill as urgent.