Rice tariffication law changes to save grain sector - Tiu Laurel

Metro Manila, Philippines - The Department of Agriculture (DA) reiterated its push to amend the Rice Tariffication Law (RTL) that, in its present form, stands to “kill” the grain sector, a Cabinet official said.

Agriculture Secretary Francisco Tiu Laurel Jr. pointed out the need to restore the regulatory powers of the National Food Authority (NFA) to support the subsidized rice program. The law stripped the agency of its regulatory functions and limited it to purchasing stocks as a buffer during calamities.

“I’ll be very honest, I really feel the RTL, as it is written today, will kill our rice industry. If it is not addressed, if it is not amended, it will kill the rice industry,” Tiu Laurel told reporters on the sidelines of a post-State of the Nation Address discussion on Tuesday, July 30.

Speaker Martin Romualdez has filed a bill to introduce changes to the RTL.

Tiu Laurel said the subsidized rice program will only be sustainable if the NFA is allowed to sell rice at the retail level. He explained that the DA has to sell 20 percent of the palay procurement from farmers at P20 pesos per kilogram, while the rest would be sold to retailers at P38 to P42.

The government first offered the P20 rice to so-called vulnerable sectors through Kadiwa centers. By 2026, it is planning to sell the cheap grain to half of the country’s population.

Tiu Laurel said the administration plans to spend P18 billion next year for the rice subsidy.