The Department of Agriculture said the regulatory powers of the National Food Authority must be restored to allow it to regulate rice traders and bring down prices of the staple grain.
“In the past, rice traders were required to register with us. Since the NFA does not have regulatory powers anymore, we cannot revoke their license to operate if they engage in unfair practices,” Agriculture Secretary Francisco Tiu Laurel said.
Tiu Laurel said when the Rice Tariffication Law was passed in 2019, the NFA powers were limited to managing buffer rice stocks.
“Previously, the NFA was also allowed to import so we can intervene if there is shortage. That is no longer the case. So it would really be a big help if these mandates can be restored,” he added.
Marikina City Rep. Stella Quimbo, however, dismissed Tiu Laurel’s claim that the DA is powerless to address soaring rice prices, noting clear legal provisions granting the agency enforcement authority.
She said the Agriculture department has significant powers under the Price Act and the amended Rice Tariffication Law to act against price manipulation, hoarding, profiteering and cartels in the rice industry.
“Do not tell that you do not have the power that you do not have the power to go after people conspiring and making the prices of rice go up because that is not true,” she told DA Undersecretary Asis Perez during a hearing of the House “Murang Pagkain” Super Committee.
Quimbo cited Section 10 of the Price Act, saying the law clearly empowers the DA to conduct investigations, impose fines of up to P1 million, seize basic necessities, and initiate prosecutions.
The rice price issue came to the fore after NEDA Director Nieva Natural told the House panel on Tuesday that the President’s Executive Order 62, which lowered the tariff on imported rice from 35 percent to 15 percent, did not lead to a reduction in prices as expected.
“This is also a puzzle for us… Perhaps this deserves a more nuanced analysis,” Natural said.
Quimbo cited data showing that the landed cost of rice had decreased from P34.21 per kilogram in July to P33 in December given the reduced tariff, but this did not translate to lower retail prices.
Earlier, the Philippine Rice Industry Stakeholders Movement said traders were importing high-cost varieties instead of affordable rice.
PRISM co-founder Orlando Manuntag said from January to December 2024, at least 74 percent of the 4.3 million metric tons (MT) of imported rice that arrived were premium varieties, primarily whole grain, which are significantly more expensive.
Only a small fraction consisted of well-milled or broken rice—varieties intended to lower prices for consumers, he said.
Manuntag called on the government to enforce regulations requiring a mandatory allocation of at least 10 percent of imports for well-milled and broken rice.
The House super panel earlier asked the National Bureau of Investigation to probe the possible market manipulation that resulted in high rice prices despite the tariff cut.
Government data showed the tariff reductions have resulted in P13.3 billion in foregone revenues, which lawmakers suspect may have ended up benefiting rice importers and traders instead of lowering retail prices.
Albay Rep. Joey Sarte Salceda, lead chairperson of the super panel, also asked the Bureau of Internal Revenue to look into the filings and tax payments of top rice importers.
“Congress cannot request tax filings. They are protected by Section 270 of the Tax Code. But the BIR can verify their own assessments and records. These top importers are importing in the billions. So, their tax payments should reflect that,” Salceda said.
Manila Standard tried to get comment from major rice traders but none have replied as of press time.
Salceda said a charge of tax evasion would then allow the Anti Money Laundering Council to look into top importers’ transactions, “as tax evasion is a predicate offense that would allow AMLC to look deeper.”
“Around the time of the President’s rice price ceiling, the gap between landed import price and domestic retail price was just 3 pesos per kilo. Now it has swelled to 20 pesos per kilo, even as farmgate prices also went down.”
“This is just short of being supernatural. There is clearly pricing abuse— we just need to pinpoint at which stage,” Salceda said.
