Agricultural producers and local farmers’ groups have voiced strong approval for a legislative proposal to bring back the National Food Authority’s (NFA) power to intervene in the local rice market.
Proponents argue that restoring these functions is crucial for stabilizing fluctuating rice prices and uplifting local farmers’ incomes.
The measure received significant traction during a House Committee on Agriculture and Food hearing, led by Quezon 1st District Representative Mark Enverga. The committee is currently reviewing a substitute bill that consolidates 26 separate legislative measures into the proposed Rice Industry and Consumer Empowerment (RICE) Act.
A key component of this consolidated bill is House Bill No. 1, authored by former House Speaker and Leyte 1st District Representative Martin Romualdez.
In his explanatory note, Romualdez highlighted persistent price volatility, warehouse congestion, and weakened local palay procurement as the primary justifications for reinstating the NFA’s regulatory and market intervention capabilities.
Raul Montemayor, the national manager of the Federation of Free Farmers, testified that the rice market enjoyed greater stability prior to the enactment of the Rice Tariffication Law (RTL), back when the NFA could strategically release stocks to regulate market prices.
“Ngayon po, malikot ang galaw ng presyo ng bigas, up and down,” Montemayor pointed out.
He further noted that while everyday consumers bear the brunt of an unpredictable market, intermediaries reap the rewards.
“It is the middlemen — traders, importers and wholesalers — who are benefitting from the RTL regime,” he added.
Montemayor urged legislators to preserve the beneficial aspects of pre- and post-RTL policies while eliminating the provisions that have harmed the agricultural sector.
Echoing the call for reform, Samahang Industriya ng Agrikultura executive director Jayson Cainglet backed the proposal to expand the NFA’s capacity to buy palay directly from homegrown farmers.
“Pag maganda ang presyo, well and good for the farmers. Pero ‘pag mababa, the NFA should procure as much as 10 percent (of the harvest) to influence prices,” Cainglet explained.
However, Cainglet clarified that their group opposes restoring the NFA’s import and trading monopolies, emphasizing that state efforts should strictly prioritize purchasing rice and palay from domestic producers.
Enverga announced that relevant government agencies have been given a one-week deadline to submit their respective position papers.
The committee plans to finalize the substitute bill promptly before endorsing it to the House plenary for formal debates.