Enhancing the National Food Authority (NFA) powers to manage the country’s rice supply chain and enhancing the Rice Competitiveness Enhancement Fund (RCEF) are the keys to stabilizing the price and supply of rice – and ultimately, giving Filipinos access to cheaper rice.
This was the gist of Sen. Robinhood “Robin” C. Padilla’s Senate Bill 2672, which also sought the creation of a Rice Industry Development-Program Management Office (RID-PMO) to ensure a holistic approach and improve collaboration of rice-concerned agencies and industry players.
“The present amendatory bill seeks to restore the NFA’s role in managing the country’s supply chain. With the renewed and strengthened mandate of NFA in the amendatory bill, the stabilization of the price of rice will be guaranteed and supply functions will be regulated. Ultimately, access to cheaper rice will be more feasible for poor Filipinos,” Padilla said in his bill, which proposes amendments to the Rice Tariffication Law (RA 11203).
He added the bill seeks to increase the RCEF and extend its validity for another six years, to further improve Filipino farmers’ competitiveness and income.
Under the bill, Padilla proposed that the NFA exercise its authority to oversee and ensure compliance with all pertinent standards and regulations, “leveraging its established expertise and nationwide network to uphold the national interest in rice buffer stocking and food security.”
Also, the NFA is empowered to:
* Require the registration of all grains warehouses and maintain a national database of such registrations;
* Inspect warehouses as necessary to ensure compliance with standards related to rice quality and supply;
* Collect and analyze data on rice trade activities for informed policy and operational decisions
The Agriculture Secretary may declare an emergency upon the recommendation of the National Price Coordinating Council or Local Price Coordinating Council, due to the following conditions:
* Shortage in the supply of rice;
* Sustained increase in the price of rice;
* Extraordinary increase in the price of rice
The NFA may use existing inventory to supply areas where extraordinary price increases or acute shortages of rice occur; and replenish the inventory used from available sources.
Meanwhile, the Bureau of Plant Industry shall impose appropriate fees and measures for low and non-utilization of Sanitary and Phytosanitary Import Clearance (SPSIC) to ensure the timely arrival of imported rice.
BPI shall be authorized to inspect warehouses where local market players and importers store or keep milled rice. The DA Inspectorate and Enforcement shall be authorized to assist BPI in conducting regular and unscheduled inspections.
On the other hand, the NFA is authorized to purchase local milled rice – or purchase a percentage of the rice brought in by accredited importers – as necessary.
As a final recourse, the NFA shall be granted authority to directly import rice subject to explicit authorization from the President – “solely in circumstances where domestic supply deficits necessitate such imports to stabilize the national rice supply and maintain optimal buffer stock.”
Meanwhile, the RCEF shall be extended for another six years, with an annual appropriation of P15 billion.
The bill expands the RCEF’s mechanization component to include the construction and enhancement of postharvest and processing facilities, including warehouses, grain storage facilities, and drying facilities.
RCEF’s credit assistance component shall operate as a revolving fund to ensure loans to eligible beneficiaries.
Also under the bill, the Crop Diversification Program may use a portion of excess tariff revenues for rice-based crop diversification trainings, postharvest machineries and facilities, seeds and fertilizers assistance program, solar power irrigation, and small water impounding system.
