Marcos backs amending rice tariffication law to bring down prices
The government is eyeing to bring down rice prices to below P30 per kilogram starting July as President Marcos said he will certify as urgent proposed amendments to the rice tariffication law to address soaring prices of the staple grain.
“Yes, I think it justifies the urgent certification,” Mr. Marcos said in a media interview in Pasay City.
“The problem is that rice prices are increasing because traders are competing. They are bidding higher prices for [rice], and we have no control over that,” he added.
Data from the Philippine Statistics Authority released last week showed at the national level, a kilogram of regular milled rice had an average retail price of P51.41 during the second phase of April (15 to 17 April 2024). This was higher than its average retail price in the first phase of April (01 to 05 April 2024) at P51.38 per kilogram and from the second phase of March (15 to 17 March 2024) at P51.21 per kilogram.
The rice tariffication law, which is set to expire next year, has to be renewed. It also created the Rice Competitiveness Enhancement Fund with an annual appropriation of P10 billion.
Speaker Martin Romualdez on Monday said the House of Representatives and the Department of Agriculture are working together to reduce the price of rice to below P30 per kilo in certain parts of the country by the second semester.
“We are confident that it is possible to offer rice below P30 per kilo as early as July this year. The DA is currently identifying the areas where affordable, well-milled rice will be made available to the public,” Romualdez said.
“Although we cannot yet achieve this throughout the entire country, we can start in selected areas identified by the DA. We hope that this initiative will soon reach all parts of the country, especially after the amendment of the Rice Tariffication Law,” he added.
President Marcos said amending the rice tariffication law could enable the government to influence or regulate rice prices, especially in the procurement of palay (unhusked rice) and the distribution of rice to the public.
Romualdez earlier estimated that rice prices could potentially decrease by P10 to P15, nearing the P30 per kilogram mark, with the amendment of the law which permits the unrestricted importation of rice into the country.
The measure, however, restricts the NFA from both purchasing and selling rice, limiting the agency’s role in the management of buffer rice stocks.
“The certification of this bill as urgent by President Marcos is a critical step forward in our concerted efforts to improve the livelihood of our local farmers and ensure food security for all Filipinos. This amendment will allow us to address the challenges and limitations of the current law, ensuring that it serves the best interest of the agricultural sector and the consumers,” Romualdez said.
Agriculture Secretary Francisco Tiu Laurel Jr. said pending the amended rice tariffication law, the NFA may be authorized to sell affordable rice through KADIWA centers, which can be established nationwide with the support of local government units.
“Starting in July, some of these KADIWA centers will be operational in specific regions and will offer affordable, well-milled rice five days a week. The operation of these centers will depend on the rice supply available to the NFA,” Tiu Laurel said.
“Gradually, we aim to increase the number of KADIWA centers across the country with assistance from local government officials. Many have volunteered to provide public spaces for these centers,” he added.
Senator Cynthia Villar, for her part, also called for the immediate passage of Anti Agricultural Economic Sabotage Law to control the middlemen and traders.
The measure, which has been certified as urgent by the President, states that there shall be severe sanctions on the nefarious acts of smuggling, hoarding, profiteering, and cartel of agricultural and fishery products as a measure against the manipulative scheme of economic saboteurs.
Villar earlier said she has not heard of any clamor to scrap the rice tariffication law, noting that only importers and middlemen are veering themselves away from the measure.
At the House, Deputy Speaker and Quezon District Rep. David Suarez underscored the urgent need to address the rising costs of goods, especially rice.
“We feel that one of the main challenges facing our countrymen is the constant increase in commodity prices, and amending the rice tariffication law is one sure step that we can do to have more competitive prices for Filipinos,” he said.
Editor’s Note: This is an updated article. Originally posted with the headline Romualdez: Rice below P30 per kilo possible by July
