Agriculture officials are calling for the restoration of key regulatory powers to the National Food Authority (NFA), saying the Rice Tariffication Law (RTL) curtailed the agency’s ability to stabilize rice prices and ensure supply, particularly during emergencies.
Under the RTL, which was amended earlier this year, the NFA lost its authority to import rice and sell it directly to the public, functions that previously allowed it to manage buffer stocks and temper market volatility.
NFA administrator Larry Lacson said the NFA has effectively been reduced to a buffer-stocking agency, with its mandate limited to procuring palay (unmilled rice) from local farmers for emergency reserves.
“We can only release stocks through auction in specific situations—when rice is aging, during a declared food emergency, or after a calamity. Even then, failed auctions increase the risk of spoilage,” he said.
Lacson said milled rice deteriorates within two to three months, while palay can last up to six months. However, following the first-in, first-out system, it could take up to nine months before stocks are eligible for auction.
“This leads to inferior quality and higher maintenance costs. Allowing NFA to directly release stocks to the market would ensure better quality rice at more affordable prices,” Lacson said.
Despite these limitations, the NFA increased its buffer stock, with more than 7.7 million 50-kilogram bags purchased, enough to cover 10 days of national consumption. However, its warehouses are nearing capacity.
“We need to restore some of NFA’s powers to help manage the country’s rice situation more effectively. The inability to sell rice directly has also limited NFA’s ability to use its funds strategically—for example, to procure more rice and make market interventions that benefit both farmers and consumers,” said Agriculture Secretary Francisco Tiu Laurel.
Tiu Laurel, who also chairs the NFA Council, said that while the House version of the revised Rice Tariffication Law included provisions to strengthen the NFA’s role, these were rejected by the Senate committee on agriculture.
