Farmer groups support bill restoring NFA role in rice market

Farmer groups have expressed support for a bill that would allow the state-run National Food Authority (NFA) to intervene in the rice market by selling rice or buying palay from farmers to prevent unfair price increases.

The Federation of Free Farmers (FFF) and Samahang Industriya ng Agrikultura (SINAG) made their positions known during a House agriculture and food committee hearing on the proposed Rice Industry and Consumer Empowerment (RICE) Act, principally authored by former Speaker and Leyte Rep. Martin Romualdez.

“Rice prices were more stable before the enactment of the Rice Tariffication Law (RTL), when the NFA had the authority to freely sell its rice stocks to influence market prices. Right now, rice prices fluctuate a lot — going up and down,” FFF national manager Raul Montemayor said.

The RTL, passed into law in 2019, removed the NFA’s authority to buy and sell rice.

“It is the middlemen—traders, importers, and wholesalers—who are benefitting from the RTL regime,” Montemayor added.

For his part, SINAG executive director Jayson Cainglet said the NFA’s mandate should be expanded to allow it to buy palay and help stabilize prices for farmers.

“When prices are good, that is well and good for the farmers. But when prices are low, the NFA should procure as much as 10 percent [of the harvest] to influence prices,” Cainglet said.

Romualdez agreed, saying persistent price instability, warehouse congestion, and weakened palay procurement require immediate action.

“There is now a compelling need to restore to the NFA some, two if not all, of its original regulatory and market intervention powers,” he said.—MCG, GMA News