Manila: The Senate Committee on Agriculture, Food and Agrarian Reform is considering significant changes to the Rice Tariffication Law (RTL) and aims to restore the powers of the National Food Authority (NFA) in an effort to stabilize prices and safeguard farmers. The committee has raised concerns about the negative impact of the RTL on the agricultural sector.
According to Philippines News Agency, Committee Chair Senator Francis Pangilinan expressed his concerns during a recent hearing. He highlighted the sharp decline of up to PHP8 per kg in the farmgate price of palay due to the ongoing influx of imported rice into the market. Pangilinan described the RTL’s impact on agriculture as more detrimental than beneficial, indicating that policy reforms are necessary.
Pangilinan also mentioned reports of potential price manipulation, irregularities in warehouse management, and the diminished ability of the NFA to protect both producers and consumers. Agriculture Secretary Francisco Tiu Laurel Jr. has also called for an RTL overhaul, aiming to enhance government interventions, provide better extension services, and modernize the NFA.
The senator noted that both the executive and legislative branches have agreed to pursue amendments to the law. He reported having discussions with President Ferdinand R. Marcos Jr., House of Representatives Agriculture Committee Chair Rep. Mark Enverga, and Agrarian Reform Committee Chair Rep. Leah Bulut-Begtang to coordinate the proposed reforms.
According to Pangilinan, President Marcos has approved the issuance of two executive orders to support the legislative amendments. One order sets a minimum floor price for palay purchases by the government under the Sagip Saka Act, while the other mandates that all government agencies involved in food procurement purchase directly from farmers and fisherfolk organizations.
Pangilinan emphasized the importance of these reforms, stating that they will ensure that government agencies, hospitals, and state universities acquire agricultural products at fair prices directly from farmers. He called for collaboration with government partners, the private sector, and farmers to establish reforms that will bolster the future of agriculture, farming, and the livelihoods of Filipinos.
The RTL, known as Republic Act 11203, was implemented to liberalize rice imports by replacing quantitative restrictions with tariffs and created the Rice Competitiveness Enhancement Fund to support farmers through mechanization, seeds, credit, and training. However, critics argue that it has led to a decline in palay prices and weakened the NFA’s regulatory role, prompting renewed calls for its amendment.