DAVAO CITY — The Department of Agriculture on Monday appealed to Congress to reinstate the National Food Authority’s role in stabilizing rice prices and increase funding for programs aimed at boosting rice production and farmers’ incomes.
This request came as lawmakers considered extending the Rice Tariffication Law.
In his report to the House of Representatives Committee on Agriculture, DA Secretary Francisco P. Tiu Laurel, Jr. said the RTL is a landmark legislation that has enhanced farmers’ productivity and incomes while also benefiting consumers through increased competition from freer importation.”
Tiu cited that the significance of rice extends beyond food security, influencing economic policy, particularly during this period of global price increases due to supply constraints and El Niño-related production concerns.
According to the DA chief, revisions to the Rice Tariffication Law (RTL) are necessary in light of climate change, which has reduced the frequency of El Niño events to 3-5 years, posing persistent challenges to rice production and food security.
Due to the lack of substantial investments in agricultural infrastructure over the past 27 years, the Department of Agriculture supports the extension of the Rice Tariffication Law (RTL) and an increase in the Rice Fund. This will enable farmers to enhance their productivity and competitiveness through:
- Greater mechanization
- Wider adoption of better technology and inputs (such as seeds and fertilizers)
- An expanded network of postharvest facilities (including dryers, mills, silos, and warehouses)
According to Laurel, ‘Extending the RTL is the right course of action.’ said there is a need to build on its successes, making critical adjustments to strengthen it further and ensure maximum impact in its implementation.
Laurel outlined the major amendments to the Rice Tariffication Law (RTL) proposed by the Department of Agriculture (DA) by Strengthening the National Food Authority’s (NFA) role as a price stabilizer by:
- Restoring its ability to import rice when necessary to augment domestic supply, subject to the approval of the DA Secretary
- Reinstituting its warehouse registration and monitoring functions
- Empowering it to regulate rice prices and market supply.
- Allocating rice import tariff revenues exceeding P15 billion to various programs, including:
- Financial assistance for farmers
- Crop diversification initiatives
- Water impounding and watershed rehabilitation and development projects.
- Solar power irrigation programs.
These amendments aim to enhance the RTL’s impact and support the agriculture sector’s growth and development.
“The proposed amendments to the Rice Tariffication Law (RTL) also include:
Extending the Rice Fund until 2030, with a focus on:
- Reallocation of funds towards:
- Farm machinery and post-harvest facilities
- Storage and processing infrastructure
- Seed development
- Training and extension service with special emphasis on:
- Soil health improvement initiative
- Pest and disease management strategies which is aimed at protecting and enhancing rice production
- Establishing the Rice Industry Development-Program Management Office as the Secretariat of the Rice Competitiveness Enhancement Fund (RCEF), responsible for:
- – Coordinating Rice Fund interventions
- – Managing a comprehensive database
- – Ensuring effective implementation of RCEF activities
These proposed amendments, Tiu said, aim to strengthen the RTL and support the long-term development of the rice industry.
The Rice Tariffication Law (RTL) is just one of the many progressive initiatives undertaken by the government to boost productivity and enhance the resilience of our agriculture sector and the economy as a whole.
This is a critical imperative, given that Philippine agriculture faces numerous challenges, including Volatility caused by global conflicts, Difficulties posed by climate change, and Natural calamities.
He said addressing these challenges, the country can build a stronger and more resilient agriculture sector, which is essential for the country’s economic growth and development.
