NFA ends regulatory function; rice liberalization begins

by Louise Maureen Simeon (The Philippine Star), Mar 5, 2019

MANILA, Philippines — Filipinos can expect more imported rice to enter the country as the law liberalizing the local rice industry takes effect today.

The Rice Import and Export Libelization Law or Republic Act 11203, signed by President Duterte on Feb. 14, lifted import restrictions on rice to make the price of the staple affordable for all.

With RA 11203 in effect, the National Food Authority (NFA) has been stripped of its regulatory functions over international and domestic trading of rice.

Among these functions are the licensing and registration of persons and entities engaged in the grains business, collection of regulatory fees, issuance of negotiable warehouse receipts, warehouse inspection, authority to seize hoarded stocks and enforce rules and regulations in the grains business.

“As spelled out in the law’s self-executing provisions, we have instructed our field offices to cease all regulatory functions over our local grains business starting today,” NFA officer-in-charge administrator Tomas Escarez said.

“We will just be waiting for the release of the final IRR before we fully shift our focus on buffer stocking for calamities and emergencies, as stated under the law, and on the eventual restructuring of our agency to suit its new functions,” Escarez said, referring to the implementing rules and regulations.

Even before the signing of the law, the NFA has expressed concern regarding the possible implications of the removal of its regulatory powers over the local grains industry.

“Now that the law has been signed and due to take effect today, we have to abide by it,” Escarez said.

As early as January, Escarez instructed the NFA field offices to focus on aggressive palay procurement for buffer stocking, in the wake of sporadic harvests, especially in Mindanao provinces.

The NFA buys palay at the current support price of P17 per kilogram plus additional incentives of P3 per kilo and P0.70 per kilo for delivery, drying and cooperative development.

This means an individual farmer can get a maximum of P20.40 per kilo while members of farmer cooperatives will get a maximum of P20.70 per kilo of palay sold to NFA.

Local rice producers have warned that the new law would kill the Philippine rice industry.