MANILA, Philippines—The National Food Authority (NFA) is urging Congress to approve its proposal that the Aquino administration absorb its estimated P163 billion in debts so that it could continue its mandate of keeping a stable supply and affordable price of rice.
Newly appointed NFA Administrator Renan Dalisay said the agency would be able to maintain a 15-day strategic rice reserve worth P14.5 billion to P16 billion without taking on new obligations as long as it was freed of its current loan obligations which were incurred in the last decade.
The NFA has racked up a massive debt load over the last decade largely due to its efforts to keep both farmers and consumers happy by subsidizing both the farm gate and market prices of rice.
Butil Rep. Agapito Guanlao has filed House Bill No. 3477 seeking to strengthen the NFA and prevent a recurrence of the rice crisis brought about by Supertyphoon “Yolanda” last year.
Guanlao said that with no takers for the privatization of the NFA, the government should strengthen the agency so it could continue with its mandate.
But the GCG, or Governance Commission on Government-Owned and -Controlled Corporations (GOCCs) cautioned members of the joint House committees on government enterprises and privatization, agriculture and food, and food security against approving a debt restructuring program for the NFA without addressing its dual but conflicting roles in rice supply and pricing.
GCG Commissioner Rainer Butalid said any attempt to rehabilitate the NFA should include a clear delineation of its regulatory and developmental functions to prevent the agency from falling into a debt trap again.
Akbayan has filed House Bill No. 5118 creating a new entity to replace the NFA with its regulatory, development and research functions transferred to the Department of Agriculture. –Gil C. Cabacungan