NFA to source buffer stock only from domestic farmers

The National Food Authority (NFA) will stay as keeper of the country's buffer stock, but it must source its supply only from local farmers, according to the newly signed rice tariffication law.

The NFA is currently mandated to keep 15 days of rice buffer stock during the harvest season and 30 days during lean months.

Section 8 of Republic Act 11203 or the Rice Tariffication Act, however, provides that the NFA will maintain “sufficient rice buffer stock to be sourced solely from local farmers.”

The provision essentially removes the NFA's function as rice importer to replenish the buffer stock.

There were calls from some lawmakers last year to abolish the NFA following accusations that it failed to fulfill its mandate of keeping rice prices stable.

Malacañang earlier said the NFA might be abolished once the law that imposes tariffs on rice imports instead of quotas is in place.

President Rodrigo Duterte signed the rice tariffication law on February 14, a copy of which was released by Malacañang on Monday.

The measure removed quantitative restrictions on rice and allowed private traders to import the commodity from countries of their choice.

Private importers, however, must secure phytosanitary permit from the Department of Agriculture's Bureau of Plant Industry and pay a 35-percent tariff on shipments from Southeast Asian countries and higher rates from source outside the region.

The law earmarks P10 billion for the Rice Competitiveness

Enhancement Fund, of which P5 billion will be allotted to farm mechanization, P3 billion to seedlings, and P1 billion to expanded rice credit assistance.

The fund intends to ensure that rice imports won't drown out the agriculture sector and rob farmers of their livelihood.

“As we have said, this law is expected to result in lower rice prices and help cushion the impact of inflation for the benefit of the consumers,” presidential spokesperson Salvador Panelo said.

“The law, at the same time, protects our farmers from the emerging competition as a result of its implementation through a direct safety net and productivity support in the form of the Rice Competitiveness Enhancement Fund.”